Solutions for Bharat: How airpay is looking to rewrite financial access beyond India's metros

Economic Times

2 days ago

Kunal Jhunjhunwala, Founder and MD, airpay
As digital payments become ubiquitous in cities, the real challenge—and opportunity—lies in bringing financial services to Bharat. Semi-and rural India is where banking access is still patchy, trust in digital remains low, and everyday transactions often happen in cash. For Kunal Jhunjhunwala, founder of airpay, this wasn't just a gap—it was a systemic failure waiting to be fixed. What began in 2012 as a quest to solve the pain of micro-payments has now grown into a fintech platform, with a deep rural footprint and a mission to make finance frictionless, equitable, and local. In a conversation with ET Digital, Jhunjhunwala traces airpay's journey from bootstrapped beginnings to global expansion, reflects on regulatory shifts, and discusses the next chapter for fintech in India. Edited excerpts.
Economic Times (ET): What led you to start airpay and what was the initial thought around it? I mention initial thought because your idea may have seen versions and pivots.
Kunal Jhunjhunwala (KJ): The idea for airpay came from a very real problem we faced at Hungama, where I was part of the product and strategy teams. Around 2010, we launched Hungama.com and began selling digital content—songs, ringtones, and other items — that cost as little as Rs 10. Back then, telco billing was the dominant payment option, but telcos kept 70–80% of the revenue. That just was not sustainable.We looked at net banking and card payments, but it was a nightmare—integrations were clunky, and the transaction fees were as high as 10%. Processors were not keen to support micro-payments either. That's when it hit me: if we were struggling with this, so were thousands of other businesses in India. The problem was not unique to Hungama. It was systemic.That's what sparked airpay in 2012. The goal was straightforward—to create a more inclusive and accessible payment platform that could operate effectively across both urban and rural India. The mission has not changed: to make payments frictionless and financial services more inclusive. And along the way, we have evolved into the country's only integrated omnichannel payment aggregator, offering both cash and digital solutions under one roof.
ET: You recently completed 13 years. What does airpay do today, and how is it relevant to India's financial landscape?
KJ: When we started airpay in 2012, the digital payment space in India was still in its infancy. Over the past 13 years, the country has transformed rapidly—but access to financial services remains deeply unequal. While metros have seen a surge in digital adoption, a large part of Bharat—semi-urban and rural India—still struggles with access, not just to digital payments, but to financial services as a whole.
We often say, just like you don't generate your own electricity, businesses should not have to piece together financial tools from different providers. That is the problem airpay set out to solve—with a unified platform that brings together payments, credit, compliance, and commerce under one roof.At airpay, we've always believed that the future of finance lies in simplicity powered by smart technology. We have built a platform that brings together over 160 payment instruments—UPI, cards, wallets, net banking—into a single, intelligent dashboard. But payments are just the beginning. Our core focus is to help businesses accept payments, make payments, and manage their business — all through one seamless platform. Whether it's streamlining vendor payouts, accessing working capital, or staying compliant with tax regulations, we're solving real-world problems for businesses across India. Our mission is clear: to remove complexity from financial systems so businesses—big or small—can grow with confidence.
ET: You focus a lot on rural regions. What is the reason, and how is their need unique? How do you solve their problems?
KJ: Semi-urban and rural India remains significantly underserved in financial access. While digital adoption has surged in urban India, towns in semi-urban and rural cities still grapple with trust gaps, low digital literacy, and limited banking infrastructure. That is where airpay steps in—through a trust-first, assisted model driven by airpay vyaapaar.We work with local kirana stores and small businesses, converting them into tech-enabled financial service hubs (known as airpay vyaapaaris). These vyaapaaris help customers withdraw cash, send remittances, make utility payments, recharge, access government schemes, buy insurance, and more. Over five years, airpay vyaapaar has grown from 75,000 to over 6.5 lakh airpay vyaapaaris across over 13,000 pin codes—serving over 9 crore customers and facilitating over 12 crore transactions in FY26 alone.Our service portfolio has evolved from core offerings like DMT and AEPS to over 500 government services, insurance, CMS, POS, Aadhaar Pay, QR-based payments, and cash collections —helping users and small businesses truly participate in the formal economy.In 2023, we acquired FinMapp and relaunched it as airpay money—a digital financial wellness platform tailored for middle-income users to manage, save, and grow their money. It complements our on-ground network with a digital layer, creating an inclusive ecosystem for aspirational Bharat.
ET: What has been the performance of airpay vyaapaar and what has been its impact on merchants and consumers in rural areas?
KJ: Launched in May 2020 amid the COVID-19 crisis, airpay vyaapaar has grown into a transformative financial inclusion platform, empowering over 6.5 lakh local retailers in more than 6 lakh villages, over 600 districts, and 36 states and union territories to become neighbourhood bankers—delivering 50+ banking and financial services directly to their communities. By turning traditional kirana stores into digitally enabled micro-entrepreneurship hubs, airpay vyaapaar provides services like money transfer, AePS-based cash withdrawal, bill payments, insurance, gold investments, assisted ecommerce, and working capital loans—all through a single, easy-to-use platform. These services are built on three core pillars: revenue enhancement, business management and revenue collection.The economic and social impact of the platform is significant. airpay vyaapaaris —now earn an average monthly income of Rs 25,000 to Rs 30,000 by enabling banking and financial services. Our financial inclusion platform – airpay vyaapaar - also unlocks access to credit, enabling business growth and enhancing financial resilience. This has resulted in increased economic activity, job creation, and customer stickiness in rural and semi-urban India.For consumers, airpay vyaapaar offers comfort, convenience, and trust—especially in areas where traditional banking infrastructure is limited or intimidating. Locals can withdraw their Direct Benefit Transfers (DBT), purchase financial products, or make payments through the same airpay vyaapaari's outlet where they buy daily essentials. This has made formal banking approachable, accessible, and integrated into everyday life—especially for farmers, elderly citizens, women, and unemployed youth.Additionally, airpay vyaapaar has taken measurable steps to address systemic challenges such as the gender pay gap and digital literacy divide. We have onboarded over 200 women vyaapaaris, creating pathways to financial independence and entrepreneurship for women at the grassroots. Complementing this, the airpay academy, our hybrid skilling platform, equips airpay vyaapaaris with essential digital, financial, and entrepreneurial skills needed to succeed in today's digital-centric economy.
ET: What are the biggest impediments in rolling out solutions for the rural market and how did you overcome them?
KJ: Serving semi-urban and rural India isn't just about technology—it's about navigating a layered, often fragmented ecosystem. Unlike urban markets where adoption is faster and incentives are clearer, semi-urban and rural expansion demands patience, deep engagement, and a ground-up approach.The first real challenge is scale and geography. Expanding into semi-urban and rural India means more than just launching a product—it requires deep, on-ground engagement. From onboarding local airpay vyaapaaris to equipping them with the right tools and ongoing training, the process demands significant time, commitment, and trust-building. This isn't a plug-and-play model—it's a people-first approach that grows community by community.Then there's the challenge of regulatory flux. The rules change frequently, especially in sectors like payments and lending. Each update entails revising SOPs, retraining agents, and educating end-users—all while ensuring business continuity. And that's resource intensive.Perhaps the most complex part is the coordination between stakeholders—banks, regulators, tech providers, and on-ground partners. Their interpretations of compliance and implementation timelines often vary, resulting in delays or inconsistencies at the final stage.We have tackled this by staying agile. Our tech is modular and adaptable, and our on-ground teams are trained for resilience. Most importantly, we treat our airpay vyaapaaris as partners, not just agents—investing in their growth ensures our impact is both scalable and sustainable.
ET: How is India's regulatory environment regarding fostering innovations? You have been around for a decade. How has the ecosystem evolved over the years, and where is it heading?
KJ: Over the past decade, India's regulatory landscape has shifted from a vision-setting role to a more prescriptive, hands-on approach. This was necessary, given the influx of well-funded players and the disruption they brought. While this has created a more structured and accountable ecosystem, it has also raised the bar for compliance—what once required a simple RBI intimation now demands formal licenses, audits, and ongoing oversight.The upside is a more transparent, consumer-friendly environment. However, the challenge lies in striking a balance between innovation and compliance. Prescriptive regulations sometimes limit the flexibility startups need to experiment. While collaborative initiatives exist, innovation mirrors the regulator's vision more than market-driven creativity.That said, India's approach has matured significantly. It's no longer just about enabling basic access, but about building trust on a scale. The next step is to find the spot where regulation ensures stability without stifling transformative ideas.
ET: What are the emerging trends in fintech and the role of airpay in shaping these standards with a robust operational network?
KJ: One of the most striking trends in fintech is the convergence of online and offline payments. Today, a customer in a physical store might complete a transaction via UPI or a payment link, experiences once confined to e-commerce. This shift highlights a growing demand for seamless, real-time payments across channels.However, with this convenience comes an increased risk of fraud. At airpay, we have seen this firsthand, such as attempts to misuse biometric data in our financial inclusion network. We responded by upgrading fingerprint scanners to detect liveness, ensuring authenticity.This speed of change—from innovation to threat to resolution—has dramatically accelerated. What once took years now unfolds in months. That's where our operational depth comes in. With a presence across geographies, we can identify emerging patterns early, whether in a village in Rajasthan or a metro city, and deploy rapid, localised solutions. Fintech isn't just evolving—it's growing faster, and agility is everything.
ET: How was business last fiscal in terms of number of customers, businesses enabled, transactions carried out and revenue? What is your target for this fiscal year?
KJ: FY 2024–25 was a defining year for airpay, as we continued to scale sustainably while remaining profitable for the third year in a row. Over the past 13 years, we have grown from solving micro-payment challenges to building a full-stack financial technology ecosystem that now empowers over 3-lakh businesses.Looking ahead, we are targeting 20–30% annual growth, backed by a hybrid of strategic partnerships, cautious expansion, and regulatory alignment.