How UPI, ONDC, and India Stack are unlocking new opportunities for small businesses

India’s digital public infrastructure (DPI) — Aadhaar, UPI, FASTag, DigiLocker, Account Aggregator and open networks — has rewired how citizens and businesses transact. For SMEs, DPI collapses friction: identity, payments, credit, compliance and logistics now sit on interoperable rails. This creates level playing fields where the smallest supplier can plug into national demand.

Open Payments, Open Possibilities

UPI did more than make payments free and instant; it standardised trust. Small merchants can accept digital money without hardware lock‑ins, reconcile in minutes, and secure working capital based on cash‑flow histories. Recurring collections and e‑mandates make subscriptions feasible for even tiny SaaS products.

Data You Control

Through the Account Aggregator framework, consented data flows from banks, tax systems and utilities to lenders or fintechs. This turns a thin‑file SME into a data‑rich applicant, improving credit outcomes while preserving privacy. DigiLocker similarly reduces document chase and onboarding time for vendors and employees.

Open Networks for Commerce and Logistics

Open Network for Digital Commerce (ONDC) and allied networks in mobility and health aim to unbundle discovery from the marketplace. Sellers pick their logistics and payment partners; buyers discover local supply more easily. For SMEs this means lower platform dependency and the ability to own customer relationships again.

What to Do Now

Audit where paper or proprietary portals slow you down, then replace them with DPI rails. Adopt UPI Autopay, e‑invoicing, e‑way bills and e‑sign. Use AA‑enabled credit to smooth cash‑cycles and experiment with ONDC for new demand. The compounding effect is lower cost of compliance and faster time to cash.

EqMint Takeaway

DPI is not just national infrastructure; it is a small‑business advantage. SMEs that standardise on open rails reduce friction, gain bargaining power and become finance‑ready. The winners will treat DPI as a strategic stack, not a checkbox.

FAQ’s

1. How does India Stack help SMEs grow?
India Stack for SMEs provides digital tools like Aadhaar, UPI, DigiLocker and Account Aggregator that simplify compliance, improve access to credit, and help small businesses scale faster.

2. Why is UPI important for small businesses?
UPI for business enables instant, low-cost payments, recurring collections through UPI Autopay, and builds a transaction history that supports SME finance and working capital loans.

3. How can SMEs benefit from ONDC?
ONDC sellers can reach wider markets without relying on a single marketplace, lowering discovery costs and enabling SMEs to own customer relationships while boosting digital sales.

4. What role does Account Aggregator play in SME credit?
Account Aggregator credit solutions allow SMEs to share GST, banking and utility data securely, improving underwriting and helping small businesses access fair and fast finance.

5. Is DigiLocker useful for SME onboarding and compliance?
Yes, DigiLocker onboarding reduces paperwork by storing verified digital documents, making SME digitisation smoother and helping small businesses comply with regulations quickly.