Tamilnad Mercantile Bank (TMB) has partnered with FinTech infrastructure provider TechFini to enhance its UPI (Unified Payments Interface) acquiring and issuing capabilities. The partnership aims to support the growing demand for digital payments in India and provide a scalable and secure infrastructure for payment aggregators, non-banking financial companies (NBFCs), merchants, and FinTech companies. Under the agreement, TechFini will act as a Technology Service Provider (TSP) to TMB, enabling a cloud-native UPI infrastructure that can handle high-volume payment and collection workflows.
The collaboration is part of a broader industry trend where banks are partnering with specialized FinTechs to modernize their payment infrastructure while maintaining regulatory oversight and trust. With UPI expanding beyond peer-to-peer payments to merchant transactions, credit, and automated collections, scalable and resilient backend systems have become crucial for both banks and FinTech platforms.
A key focus of the partnership is the expansion of UPI use cases in lending and collections. TechFini’s UPI Autopay solution will enable NBFCs and digital lenders working with TMB to automate EMI and loan repayments using UPI e-mandates, reducing dependence on cash-based or legacy collection mechanisms and improving efficiency and repayment predictability.
TechFini’s platform provides UPI acquiring and issuing, TPAP capabilities, a UPI Plugin SDK, and UPI Autopay, with an architecture designed to handle up to 10,000 transactions per second. The setup is intended to provide enterprise-grade scalability and readiness for future UPI enhancements. The partnership is expected to strengthen TMB’s UPI ecosystem and enable the bank to extend secure and scalable digital payment infrastructure to merchants and FinTech partners across India.
The partnership highlights the growing importance of collaborations between traditional banks and FinTech infrastructure providers in shaping the next phase of India’s digital payments landscape. As UPI volumes continue to rise and new commercial use cases emerge, such partnerships will play a crucial role in providing secure, scalable, and innovative payment solutions to meet the evolving needs of consumers and businesses. With its focus on combining trust with innovation, TMB is well-positioned to leverage the partnership with TechFini to drive growth and expansion in the digital payments space.