00:00So where do you weigh in on this debate on levying a fee or an MDR, as it's called, on
00:05UPI?
00:06It's become quite controversial, you know, locally.
00:09And does it open up more opportunities for you as a partner to UPI to be able to explore more
00:16growth?
00:17UPI has been a tremendous innovation born out here out of India.
00:22It's actually globally seen as one of the real role models of creating new payment rails,
00:28a new identity solution to open up payments capabilities, not just in India, but also connecting the world via UPI.
00:39The new payment fees have obviously been hotly debated.
00:44We believe that it's a good compromise now at the end of the day to facilitate further growth for the
00:51payment method
00:52while also making sure the economics work for all the participants in quite a balanced way.
00:58Okay. You're a participant in many ways.
01:01Do you feel there are more opportunities that open up now that a line to monetization is a little bit
01:06clearer?
01:07We have invested in the last few years to connect UPI to our global payments infrastructure
01:14and allow clients here in India to reach broadly, but also global companies to come into India.
01:21And now that the fee structure has been more clarified, we actually see quite an increase in interest also of
01:30how that infrastructure can be leveraged more broadly.
01:34Are there any numbers you can put to it, Max, to give us a sense of what UPI means to,
01:39of course, a much bigger payment system at JP Morgan,
01:41but just something that sort of illustrates for us, you know, what the growth can be over the next few
01:47years?
01:47We have seen truly, I would say, exponential growth through UPI and through the usage of UPI in the last
01:56few years.
01:56An important next step is also continuing to link UPI to other real-time payment systems around the world,
02:04for example, Zelle in the U.S., and build on that momentum going forward.
02:09And it's all driven by a strong client demand for those solutions.
02:14So we actually are very optimistic about the prospects here.
02:18All right. You said that, you know, you were meeting clients here at the conference.
02:20They sound very buoyant about the growth opportunity in India.
02:24What do you have lined up for payments over the course of the next 12 months, two years,
02:29in terms of either new services that you're offering or the kind of growth that you expect and the revenue
02:34opportunity here in India?
02:35I mentioned already the connectivity of UPI into the global payment system.
02:42There's a key investment area.
02:45Gift City is a second critical focus area for us.
02:50We've actually been there for four years now.
02:54We have a few hundred clients there growing also very, very substantially.
03:00And we are adding more capabilities there.
03:03We did have been doing trade finance and FX in Gift City for a while.
03:08Now adding liquidity and payment rails will truly round out the offering to attract further clients there.
03:15And again, we see strong, strong demand.
03:18And then maybe another key area is the GCCs.
03:22JP Morgan actually runs one of the biggest GCCs in India.
03:26And the solutions we have been developed for that around payroll, around liquidity management and FX is also something that
03:35a lot more GCCs can leverage.
03:37We actually have a GCC summit later this week in Bangalore to focus on the opportunity with the about 2
03:46,000 GCCs that we see here in India.
03:49So that is probably another key investment area.
03:52And then the last one to mention is AI and Argentic, where we are really focused on bringing the benefits
04:00of the new technology here to the country and to our clients and help them grow with what AI can
04:07offer.
04:08Okay.
04:08I'm going to talk about AI just a bit.
04:09But before that, let me dial back to Gift City.
04:11Can you give us a sense of what the growth has been like for the kind of services that you
04:15provide at Gift City?
04:17You mentioned, I think, over 100 companies in terms of client numbers.
04:21But in terms of revenue opportunity, is there any way to put a number to what Gift City has become
04:26now in your India offering?
04:28Gift City is an important component of our Indian offering.
04:33And I would say as much as we really want to see 20%, 30% growth year on year, and
04:40I actually see line of sight of doubling our business in the next couple of years there with the new
04:46investments that we are doing.
04:48All right.
04:49You already have Kinexess, which is one of your key products here in India.
04:52Can you talk us through, you know, sort of whether you're in conversations with regulators to be able to expand
04:58that product or expand access for Indian clients to it and, you know, what you see the evolution for that?
05:04Blockchain solutions offer a lot of benefits in payments.
05:08One of the key things is to get rid of cutoff times when it comes to cross-border payments so
05:13clients can really move money around the world.
05:16And also to have programmability so you can more efficiently move money to different locations.
05:24We have been here with Kinexess in India also for years already.
05:28And one of our key services is tokenized deposits.
05:31So that is basically a bank deposit on the blockchain, which combines the benefit of having a bank deposit supported
05:41by the JP Morgan balance sheet with the benefits of the blockchain that allows treasurers and CFOs truly to move
05:48money 24-7, 365.
05:51We've seen, again, good demand there.
05:53It's still small relative to the traditional payment rails, but the growth is pretty strong.
05:59So you're providing a tokenized deposit service to Indian banks?
06:03Have I understood that correctly?
06:05To multinational companies in particular who manage their liquidity around multiple locations, including here in India.
06:12All right.
06:13Just a few seconds left.
06:15How far away are we from, you know, agentic AI becoming a core part of payments?
06:21Agents making transactions with no human intervention.
06:24So far, agentic is still in the early days.
06:27It's used for discovery.
06:29We see it also in client onboarding.
06:33It's not yet really part of payments execution, to your point.
06:37We don't see yet agents truly making payments decisions.
06:40The key thing missing for that is the trust component.
06:44How do we ensure when agents take decisions that it's clear who has the liability and how that is being
06:50managed?
06:51And that is still being worked on.
06:53Having said that, we do see already real benefit from agentic payments at the end of the day in things
07:01like cash flow forecasting or thinking about basically product development.
07:08I'm so sorry to interrupt you, but I think we're headed right into a break.
07:11But I'm sure we'll have a chance to talk to you a little bit more about AI in the coming
07:14years.
07:15Thank you, guys.
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