ONDC to bring in next revolution for e-commerce after UPI: Mr. Pramod Varma, Former Chief Architect of Aadhaar
According to Mr. Pramod Varma, the Former Lead Architect of Aadhaar and Stack, the Open Network for Digital Commerce (ONDC), would usher in the next e-commerce revolution, even more significant than the Unified Payment Interface (UPI) that was implemented for digital payments in India.
While addressing the session ‘India’s path to digitalisation’ organised by FICCI Ladies Organisation (FLO), the apex body of businesswomen in the country, he said, “The ONDC is gearing up to bring financial products to the network, which is expected to happen in the next few months. The UPI is a device-agnostic, authentication-agnostic, and currency-agnostic network that revolutionised digital banking and digital transactions in the country.”
In a comparison between open networks and platform-based service providers, Mr. Pramod Varma claimed that although platforms act as intermediaries themselves and increase the cost of their service, on the other hand, digital open networking can eliminate them.
He claimed that the use of ONDC can be many, including in areas such as education, transportation, e-commerce, and healthcare, which would open up immense opportunities. ONDC will guarantee trust and compliance. Open networks would expand markets and decrease the cost of doing business.
The number of people who have access to the banking system has increased from 17% in 2018 to over 90% at present, according to Mr. Pramod Varma. Similarly, the largest biometric-based digital identity has contributed to the financial inclusion of 90% of the population, including 60% of the beneficiaries who are women.
ONDC is a not-for-profit organisation established by the Department of Promotion of Industry and Internal Trade (DPIIT). Manufacturers, suppliers, logistics companies, and customers are just a few of the stakeholders that can be connected through the ONDC's unified platform for digital commerce. In the near future, with this intervention, MSMEs will soon be able to launch their digital stores and reach a wider customer base.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.