PayNearby Secures NPCI Nod to Enter UPI Ecosystem, Launches Saathi App to Expand Digital Payments Reach

PayNearby has taken a significant step in India’s fast evolving digital payments landscape after receiving approval from the National Payments Corporation of India to operate as a Third Party Application Provider on the Unified Payments Interface.

With this approval, the company can now offer UPI services directly through its own platform, marking a strategic shift from being only an assisted banking facilitator to becoming a full fledged participant in the UPI ecosystem.

Following the approval, PayNearby has introduced a new application called PayNearby Saathi.

The app is designed to support assisted UPI onboarding and transactions through the company’s wide network of neighbourhood retailers and Digital Naaris.

The initiative is clearly aimed at deepening financial inclusion in semi urban and rural regions, where digital adoption is still uneven and often dependent on local support.

NPCI approval as a TPAP is a major milestone for PayNearby, which has spent nearly a decade building a distribution led model focused on last mile delivery of financial services.

Until now, the company primarily enabled digital transactions by acting as an intermediary between customers, banks and payment systems.

With direct UPI access, PayNearby gains greater control over the user experience while expanding its service portfolio.

This move places PayNearby alongside established UPI apps, but with a distinct approach.

Instead of relying solely on self service digital adoption, the company is doubling down on assisted usage, a model that has proven effective in regions where customers are new to smartphones, online payments or formal banking.

The PayNearby Saathi app is positioned as a bridge between traditional cash based habits and modern digital payments.

It allows customers to use UPI for everyday needs while receiving guidance from trusted local retailers or Digital Naaris.

These partners help users with account onboarding, bill payments, money transfers and basic banking linked services.

Beyond core UPI transactions, the app aggregates access to select financial products.

These include fixed deposits, recurring deposits, gold investments, mutual funds and certain credit offerings.

By bundling these services in one platform, PayNearby aims to make financial products more approachable for first time users who may otherwise find them intimidating.

One of the defining features of the Saathi app is its focus on accessibility.

To overcome language and digital literacy barriers, the application is available in multiple Indian languages.

It also includes voice based navigation, allowing users to interact with the app through spoken commands rather than text alone.

The app integrates Bhashini, the government backed speech technology platform.

This enables users to carry out transactions and explore features in their preferred language, an important factor in regions where English or Hindi may not be the primary mode of communication.

An in app AI assistant further guides users step by step, explaining transactions and financial products in simple terms.

This blend of technology and human assistance reflects a traditional strength of India’s retail ecosystem, where trust and familiarity often matter more than sleek design alone.

By respecting this reality, PayNearby is attempting to bring modern digital tools into settings where personal relationships still drive adoption.

UPI has become one of India’s most successful digital public infrastructures, with more than 500 million active users.

Monthly transaction volumes continue to set new records, driven largely by urban consumers and younger demographics.

However, industry estimates suggest that a large segment of the adult population remains at an early stage of digital adoption.

In many semi urban and rural areas, challenges such as limited digital literacy, fear of fraud and lack of confidence in using apps independently still persist.

Assisted or hybrid models have emerged as an effective way to address these issues.

By combining digital platforms with human support, companies can help users gradually build confidence and familiarity.

PayNearby’s strategy fits squarely into this trend.

Its Saathi app is not positioned as a replacement for popular consumer UPI apps, but as a complementary solution for users who need guidance and reassurance.

Commenting on the development, Anand Kumar Bajaj, Founder Managing Director and Chief Executive Officer of PayNearby, said the TPAP approval would enable the company to extend UPI access through its distribution led model.

He emphasised that the move would help deepen digital adoption in underserved regions, where PayNearby already has strong relationships through its retail partners.

The leadership has consistently highlighted inclusion as a core objective, rather than rapid user acquisition alone.

This philosophy is reflected in the company’s measured expansion and its focus on training and empowering local partners.

PayNearby has indicated that the Saathi platform will continue to evolve.

In the coming period, the company plans to add additional services such as micro insurance and lending products.

These offerings are expected to be tailored to the needs of customers who may lack formal credit histories or easy access to traditional insurance channels.

By gradually layering services, PayNearby aims to avoid overwhelming new users while still expanding the value proposition over time.

This step by step approach aligns with the realities of financial behaviour change, which often happens slowly and through repeated positive experiences.

Founded in 2016, PayNearby operates a branchless banking and digital services network based on a B2B2C model.

The company partners with local retail stores to deliver financial and payment services at the neighbourhood level.

Today, it works with more than twelve lakh retail partners across over twenty thousand PIN codes.

This extensive network gives PayNearby a clear advantage as it enters the UPI space as a TPAP.

While many digital apps struggle to reach beyond metros and large cities, PayNearby already has a physical presence and trusted intermediaries in smaller towns and villages.

Retail partners and Digital Naaris play a crucial role in building trust, assisting with onboarding and resolving issues in real time.

For many customers, this human touch remains essential, especially when dealing with money.

At its core, PayNearby’s approach reflects a familiar Indian tradition: relying on the local shopkeeper or community member for guidance and support.

By embedding modern digital payments into this existing framework, the company is attempting to modernise financial access without discarding what has always worked.

The Saathi app is less about disruption and more about continuity.

It respects established habits while gently introducing new tools.

In a country as diverse as India, this balance can often determine whether technology truly reaches the masses.

PayNearby’s entry as a UPI TPAP adds another dimension to India’s competitive payments ecosystem.

While urban markets may remain dominated by large consumer apps, the real growth opportunity lies in bringing the next hundred million users into the digital fold.

Assisted models like PayNearby Saathi could play a crucial role in this phase of expansion.

By addressing language barriers, literacy challenges and trust deficits, such platforms help ensure that the benefits of digital payments extend beyond city limits.

As UPI continues to evolve, initiatives that combine scale with sensitivity to local needs are likely to gain prominence.

PayNearby’s latest move suggests that the future of digital payments in India will not only be about speed and convenience, but also about inclusion, guidance and long term confidence building.

With NPCI approval now in hand and a strong distribution network already in place, PayNearby appears well positioned to play a meaningful role in shaping the next chapter of India’s digital financial journey.