Tamilnad Mercantile Bank taps TechFini to scale UPI infrastructure

By Vriti Gothi

Tamilnad Mercantile Bank (TMB) has partnered with FinTech infrastructure provider TechFini to strengthen its UPI acquiring and issuing capabilities, as banks seek to support higher transaction volumes and more complex digital payment use cases across India’s rapidly expanding UPI ecosystem.

Under the agreement, TechFini will act as a Technology Service Provider (TSP) to TMB, enabling a cloud-native, scalable UPI infrastructure aimed at payment aggregators, NBFCs, merchants, and FinTech companies. The partnership positions TMB to offer bank-anchored UPI services that can support high-volume payment and collection workflows for regulated entities and large enterprises.

The collaboration reflects a broader industry trend where banks are increasingly partnering with specialised FinTechs to modernise payment infrastructure while retaining regulatory oversight and trust. With UPI continuing to expand beyond peer-to-peer payments into merchant transactions, credit, and automated collections, scalable and resilient backend systems have become critical for both banks and FinTech platforms.

A key focus of the partnership is the expansion of UPI use cases in lending and collections. Through TechFini’s UPI Autopay solution, NBFCs and digital lenders working with TMB will be able to automate EMI and loan repayments using UPI e-mandates. This is expected to reduce dependence on cash-based or legacy collection mechanisms and improve efficiency and repayment predictability for lenders.

TechFini’s platform covers 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.

Commenting on the development, Salee S. Nair, Managing Director and CEO of Tamilnad Mercantile Bank, said, “At TMB, our focus has always been on combining trust with innovation. This partnership with TechFini strengthens our UPI ecosystem and enables us to extend secure and scalable digital payment infrastructure to merchants and FinTech partners across India.”

As UPI volumes continue to rise and new commercial use cases emerge, partnerships such as this highlight how traditional banks and FinTech infrastructure providers are jointly shaping the next phase of India’s digital payments landscape.