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In 2016, UPI transformed payments in India, enabling instant 24×7 money transfer – across any bank or on any app. Today, UPI is the world’s most used real-time payment system.
In 2025, a new initiative from NBBL is set to usher in a new revolution that could redefine India’s payment habits – just like UPI did.
At Cashfree, we are proud to be one of the few payment aggregators who are working with NBBL to launch Banking Connect – a unified rail that will transform Netbanking for India.
Why does net banking need a rethink?
Netbanking in India today – with 300Mn+ transactions valued over 6Tn+ is used by 80Mn users.
Generally used for high-value transactions such as stocks and mutual fund purchases, educational fee payments, insurance premiums, etc., it’s a highly trusted mode of payment.
Yet, the netbanking experience today is not smooth for anyone. Customers face a long multi-step process to complete payment. while merchants often struggle to offer the full range of NetBanking options right from day one.
Let’s look behind the scenes to understand the why behind a fragmented netbanking experience.
- Lack of Interoperability
Today, X banks in India offer NetBanking services. But with no centralised rail or common system, every payment aggregator has to build one-to-one integrations with each bank. For merchants, this means their customers only see as many NetBanking options as the number of banks their PA has already integrated with.
- Inconsistent User Experience and processes
Since each bank operates its own netbanking system, the user experience – from mobile friendliness to the overall flow of the netbanking – depends on the bank that operates it. Generally, netbanking experience today is not mobile-friendly and requires the user to remember complicated credentials.
- Complaint Resolution Inconsistency
Without a central authority, NetBanking complaints remain fragmented and opaque. Customers endure delays and inconsistent resolutions, often without any visibility into their case status.
Tired of losing customers to clunky bank redirects? Get early access to Banking Connect and offer a mobile-first, interoperable netbanking experience today.
Introducing Banking Connect: Netbanking 2.0
Recognising all of these challenges, NBBL has built a system of net banking that’s interoperable.
Under this system, NBBL will facilitate a single streamlined platform that will be a common integration point for banks and payment aggregators. This means that instead of the one-to-one mode of working, a one-to-many system of working will now emerge.
Every bank and payment aggregator will now integrate only with the central NBBL platform – and can seamlessly work with each other to facilitate netbanking transactions for users.
It doesn’t stop here.
The new era of Netbanking will also offer mobile-first flows, replacing the current flow, which is web-based and involves redirections and multiple steps.
The new customer journey will be UPI-like, where the user can simply open the bank app of choice, and payment can be authenticated with fingerprint, face scan or OTP authentication.
The web journey will also now offer a QR flow, just like UPI, where a user can choose to complete the transaction on their phone.
Imagine a net banking experience that’s simpler, smarter and designed for the way India pays today.
What does this mean for businesses?
Netbanking at Scale from Day 1
Today, the number of Netbanking options a merchant can provide is restricted by how many banks their payment provider has integrated with, limiting customer choice and flexibility. With Banking Connect, the merchant can offer customers Netbanking facility from the banks available on the network right from Day 1. No more missing out on sales due to the unavailability of a preferred bank.
Better Conversions
Netbanking in its current form is time-consuming with multiple redirections and complex authentication, which leads to drop-offs. The new mobile-first netbanking flow is faster and does away with multiple redirections. This means lower drop-offs during the payment process and better conversions.
Better Fraud Management
Banking Connect introduces uniform fraud monitoring, stronger authentication, and consistent security protocols, making Netbanking safer and more trustworthy than ever.
What does this mean for the customers?
Smoother, Faster Payment Experience
Netbanking has never been a mobile-friendly experience. The new flow makes Netbanking mobile-first with app-based journeys that are authenticated with biometrics. This means faster payments and a smoother experience for customers.
Easier Dispute Resolution
With a centralised body governing netbanking transactions, customers now have a single point of reference to reach out, allowing transparent dispute resolution.
We, at Cashfree Payments are excited to be working with NBBL to lead this revolutionary transformation in Netbanking.
Join the first wave of merchants transforming their checkout experience with Banking Connect.
