ONDC Expands Platform, To Include Fintech Services
The Open Network for Digital Commerce (ONDC) is planning to expand its services. It will now offer financial services like credit, insurance, investments, and gift cards.
This comes after ONDC opened up to offer services in sectors like food, grocery, fashion, travel, and electronics. The new financial features will go live soon.
As per information, more than 65 entities want to join as either buyer and seller applications (lending institutions) or tech service providers. Over 20 entities have already started integrating.
Companies like Tata Digital, India Lends, Easy Pay, DMI Finance, Aditya Birla Finance, and Karnataka Bank are integrating directly or through tech service providers. ONDC is beginning with personal loans and GST-based loans. The API draft specs were released in early August for feedback. In insurance, ONDC is starting with health, marine, and motor insurance. For investments, it begins with mutual fund offerings. API specs for both will be out soon.
For mutual funds, ONDC is working with MFU. They are onboarding asset management companies. ONDC will start offering mutual funds early next month. They will begin with commission-paying regular plans. Currently, most online platforms offer commission-free direct plans. ONDC recently unveiled an "ONDC network gift card" for corporate gifting and employee engagement.
It is powered by the RuPay network and can be loaded with up to Rs 10,000. YES Bank and OmniCard are the first two issuers.
They would also launched a consumer gift card offering last month with Spice Money. It facilitates consumer purchases of gift cards from over 100 brands. Since its start, ONDC has added 12 million orders, with most from the mobility category.
Food makes up 65-70 per cent of retail orders. The platform now has nearly 1,50,000 merchants and is in 180 cities.
