OneStack, a fintech provider, secured ₹12.5 crore funding to enhance cooperative bank participation in UPI payments. The funding will help expand services among coopera…
OneStack raises Rs 12.5 crore to take cooperative banks deeper into UPI ecosystem
What Happened
OneStack, a fintech services provider, has raised Rs 12.5 crore in funding. The stated purpose of this capital is to increase the involvement of cooperative banks in the Unified Payments Interface (UPI) ecosystem. The company plans to use the funds to broaden its services across cooperative banks and non-banking financial companies (NBFCs), while also building out compliance-related offerings.
A notable operational element of this development is that partner banks can now function as both UPI issuers and UPI acquirers. In practical terms, this means such banks can enable customers to make UPI payments and can also accept UPI payments on behalf of merchants. The excerpt indicates this dual role is expected to improve revenue opportunities for the participating banks.
Why It Matters For Businesses
For cooperative banks and NBFCs, the ability to act as both issuers and acquirers represents a shift in how they participate in the digital payments chain. Historically, many smaller institutions have relied on third-party providers or larger banks to access UPI infrastructure. Taking on both roles allows these institutions to preserve direct relationships with their customers and with merchants, rather than ceding those connections to intermediaries.
From a revenue perspective, acquirer-side participation can open up merchant discount income streams, while issuer-side participation supports customer engagement. The compliance angle is equally relevant. As regulated entities, cooperative banks and NBFCs operate under RBI oversight and must meet KYC, data localisation, reporting and grievance redressal obligations. Any technology provider serving them must therefore align its offerings with these requirements. OneStack’s stated focus on developing compliance offerings suggests it intends to position itself as a bridge between smaller institutions and the regulatory expectatio…
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