This document discusses platforms that enable innovation through open architecture patterns. It provides examples like TCP/IP, smartphones, Aadhaar digital identity platform, and UPI digital payments platform in India. These platforms follow principles of being minimal, standardized, unbundled, generalized, layerable and ecosystem-driven. This allows innovations to happen on both sides of the platform by applications/systems developers and device/network providers. The document outlines how Aadhaar identity platform with over 1 billion enrollments and UPI digital payments with over 250 million transactions per month have transformed financial inclusion in India through such open architecture approaches.

1. 1
Architecting Platforms
for
innovation
@pramodkvarma

2. 2
Product 1
Raw Material 1
Product 2
Raw Material 2
Container
Shipping
Containers in
mid 1900s
Rail
Truck
Ship Air
Allows innovation on all sides
Amplifies impact of ecosystem
players
Suppliers
Transportation Networks

3. 3
Email
Web Audio /
Video
Telephony
Apps
Cloud
TCP/IP
TCP/IP Packet
Switching &
Layered Internet
Architecture
LAN
WIFI
Switches /
Routers Satellite
WAN
Allows layering of innovation on
both sides
Applications / protocols
Network Technologies

4. 4
125 Years of Telecom
Graham Bell to Now

5. 5
Architecture Patterns
● Minimal
● Standardized
● Unbundled
● Generalized
● Layerable
● Ecosystem Driven

6. 6
Architecture Patterns
TCP/IP
GPS
Internet Smartphone
Maps Payment
● Minimal
● Standardized
● Unbundled
● Generalized
● Layerable
● Ecosystem Driven

7. IDENTITY as an innovation platform
7

8. 8
Today identity is embedded within vertical solutions
and often conflated with entitlement

9. 9
Name
DoB/Age
Gender
Address
Mobile/Email
1234 5678 9012
Unique
Lifetime
Minimal, Standardized, Unbundled,
Generalized, Layerable via APIs,
Ecosystem Driven, Data Driven
Source: http://www.uidai.gov.in

10. 1 Billion in 5½ Years
Source: http://www.uidai.gov.in 10
950 M
600 M
300 M
100 M
50 M
1085 M
A Ubiquitous Digital
Identity Infrastructure
for a digital desh.
The Aadhaar system can
authenticate 100 M
transactions per day, in
real time!

11. 11
UIDAI
Registrars
Enrolment
Agencies
Operators
Training
Agencies
Certification
Agency
Device
providers
Printers
Contact
Centers
200people
6Offices
2Data centers
85Registrars
20Biometric Device Providers
410Enrolment Agencies
40000Stations
200,000Operators
7500cr Cost so far
30,000cr Savings so far
Source: Rough data obtained from papers and conversations with UIDAI

12. 12
Aadhaar is like GPS
It's minimal and zero-knowledge system
All it does is confirm identity
All the innovations
happen outside!

13. 13
ANY BANK ACCOUNT
NPCI
Aadhaar
Payment
Bridge
380 Million
Mobility
Send
money to
an Aadhaar
Number
Aadhaar based bankingusing biometric auth
On-us and off-us transactionsacross banks
RBI approved Aadhaar enabled Micro-ATMspec
Source: http://www.npci.org.in

14. Smartphones with integrated
Aadhaar compliant Iris
recognition available for
commercial use!
Biometric smart phones enable 1-click 2-factor authentication
14

15. 15
Aadhaar Hourglass
Architecture
Identity as a utility, an enabler
Allows innovation on all sides
Amplifies ecosystem players
Network effects
Biometric
Sensors
Phones Tablets
Attendance
Device
Micro ATM
Healthcare
Apps
SIM
Finance
Apps
UPI
Digital Locker
APB AEPS
DBT
eSign
Aadhaar
Applications / Systems
Devices

16. PAYMENT as an innovation platform
16

17. 17
Today payment systems are siloed and non-interoperable
making usage costly and complex

18. Validation & Assurance
Virtual Payment Address
Minimal Issuer/Acquirer Cost
Ubiquitous - Bank accounts
Easy Immediate Payments
Timely Notification
Features
Push & Pull Payments
@Every one with a bank account can send
money to any bank account in India!
Real-time posting
Funds are not locked!
Immediate notifications of
the payment made
Payments can be initiated by payer or payee.
Real-time validation of the
account and balance
No need to disclose account information.
Allows account portability, enhances privacy.
Smartphone replaces card and
PoS machine!!
18Source: http://www.npci.org.in

19. Payment Markup Language
A structured markup having a unified representation of payment instruction
● Amount and transaction context (which utility bill or which interest payment or which
insurance premium or which SIP, etc.)
● Financial address (Mobile, Aadhaar, bank account, card, virtual address, etc.)
● Pluggable authentication (mobile, PIN, biometric, digital signature, etc.)
● Transaction context (truck passing the toll gate, invoice being raised, utility bill being
raised etc., or by a rule/mandate – SIP, EMI etc.)
● Method (push/PAY or pull/COLLECT)
● Channel (Smartphone over data, feature phone over USSD, phone over IVR)
19Source: http://www.npci.org.in

20. ● Open interoperable API
● 1-click 2-FA experience
● 4-party model allowing unbundling of application from bank
● Virtual Payment Addresses hide bank details and allows features like one time
VPA, amount limited VPA, revocation, etc.
● Merchant can use smartphone/featurephone to eliminate PoS
● e-Mandate, e-Cheque and biometric authentication are coming on UPI 2.0
● Markup allowing pluggability for addresses, credentials, and channels
State of the Art architecture
20Source: http://www.npci.org.in

21. INDIA STACK Open APIs as Public Infrastructure
21

22. PRESENCE-LESS LAYER Aadhaar Authentication
Unique digital biometric identity
with open access of nearly a Billion
users
CONSENT LAYER Open Personal Data Store
Provides a modern privacy data
sharing framework
PAPERLESS LAYER
Aadhaar e-KYC,
E-sign, Digital Locker
Rapidly growing base of paperless
systems with billions of artifacts
CASHLESS LAYER IMPS, AEPS, APB, and UPI
Game changing electronic payment
systems and transition to cashless
economy
COMMERCE
(GSTn)
CREDIT
(RBI)
INVESTMENTS
(SEBI)
OTHERS
INDIASTACK
SKILLS
JAM Jan Dhan, Aadhaar, Mobile 22

23. Source: UIDAI, NPCI, TRAI Website, Conversations with NPCI, eMudhra, Deity officials
3 Bn
Authentications of
500M unique ids
1.1 Bn
Enrolments In 6 years since launch
340 Mn
eKYC in 3 years
75 Mn unique ids
380 Mn
APB Accounts Linked
1.2 B Transactions worth 4.5 B USD in 3 years
>2.5 Mn
e-Sign in 15 months
>0.8 Mn unique ids
2.9 Mn
Digilocker users &
15 months
4.8 Mn
Uploaded Docs
10M+
UPI VPA in
Just in 4 Months
~1000 cr per month!
252 Mn
Jan Dhan bank accounts
350 Mn
Smartphones
1060 Mn
Phone numbers
Jan Dhan Aadhaar Mobile
23

24. Source: UIDAI Website, Conversations with NPCI, eMudhra, Deity officials
India Stack Ecosystem
25 ASA 293 AUA
Aadhaar Authentication
23 KSA 216 KUA
Aadhaar eKYC
4 eSign ESPs
1Digital Locker Provider
20 Issuers, 500 million docs
830Banks (APB)
127Banks (AEPS)
26Banks (UPI)
24

25. Bharat Bill Payment System
API based platform allowing innovation
on delivery models
Ecosystem incentives aligned for rapid
adoption
Multi-channel (web, mobile, offline, etc) with
multi payment methods (card, cash, UPI, etc)
Unbundling bills, access, payments and
rebundling for any-to-any
Bills can go into Digital Locker which can then
be shared with consent for a use (e.g. loan)
~1 Billion
Bills per month
~250 Billion INR
monthly payments
25Source: Public data and NPCI website

26. Electronic Toll Collection
Interoperable RFID tag and API specifications
Works across 350+ toll booths on national highways
All vehicle classes, ~60 Million, supported
4 Large banks ready to be issuers and acquirers
Built as an Open API platform. In future, can be used for dynamic pricing, congestion pricing, parking apps, etc.
It can also be used to auto link transport manifests for ease cross border movements.
26Source: NPCI website and discussions with NPCI

27. GSTN Platform
Goods & Services Tax
Network (GSTN)
API based platform
GSPs can provide basic and
value-added services to
taxpayers
27
GSTN will process
5 Billioninvoices a month
across 70+ Lakhsbusinesses!
Source: GSTN website

28. 28
Disruptive innovation comes from
unbundling, layering, and rebundling!

29. 29
Thank You!
@pramodkvarma