Start-up Circle: YPay uses distributed data-based model for teenager’s financial freedom

A gradual rise in prices over the years has led teenagers to monitor their finances which could allow them to keep enough money in hand for emergencies. It is everyone’s dream to be financially independent which shapes the younger generation to be more responsible.

The Indian digital payments industry is estimated to grow up to $700 billion by 2022. In the future, the fintech industry will innovate more dynamic yet safe transaction facilities to develop and promote the digital payment landscape in the country, as per Research and Markets report.

However, digital payment options for kids and teenagers remains untouched and Navneet Gupta plans to bridge this gap with YPay.

How did your childhood shape your dreams and passions?

To begin with, I have seen entrepreneurs in my family. My father was an entrepreneur and later in his life, he got into EDII- Entrepreneur Development Institution of India. For me, he was my role model. Looking at him and growing up I always wanted to have something of my own instead of having to work for some other organization, I wanted to use my skills to help make something of my own which I can later cherish in my life.

What made you kick-start Ypay?

I always knew that entrepreneurship is my true calling. When I completed my graduation, I was prepared to explore finance space for the scope of innovation. The idea popped when I realized the possibility with the smart cards at a grocery store. There was a child standing in the payment queue holding cash. I identified that it is baseless not to explore the transaction cards full-fledged. Moreover, this would open moral horizons wherein children would learn finance management, in a secure manner. That is when I studied further and established YPay.

Why do you think that there is a need for your company to exist in today’s market?

People are opting for digital above cash. Also, understanding the possibility of contagious contractions, it will be a thing to avoid cash and choose contactless payments. Also, empowering kids’ with payment options that are secure was a gap that prevailed for way too long.

What type of tech and algorithms do you use for your product?

We use the distributed data-based model due to which the data is serverless. This ensures there is machine independence which makes use of the app safe and secure.

Apart from this, we also use multiple algorithms so that parents can know what the kids are doing and what they are up to. Not only this the data is encrypted and works on cloud servers ensuring 99% security. As our card is numberless, other details of the card like CVV are given by the banks due to which we fall under RBI guidelines due to which we do not have any data left ensuring more customer data privacy.

What role does your company play with respect to ESG?

As an organization, we understand the importance of ESG. To ensure the safety of the environment, we have been working hard to digitalize all the transactions: from KYC registration to daily transactions, there is no hard copy required, cutting down the use of paper.

To meet the social aspect of ESG, we ensure that teenagers are able to experience financial freedom by making the choice of spending where they want to.

In today’s world, there is a huge need to safeguard data, what steps have you taken to secure your company?

The data is encrypted and works on cloud servers ensuring 99 per cent security. As our card is numberless, other details of the card like CVV are given by the banks due to which we fall under RBI guidelines due to which we do not have any data left ensuring more customer data privacy.

What pushed you towards targeting this demographic because most teenagers are not financially independent?

Children may not be financially independent, but they can be financially empowered in terms of management and understanding. Parents do give pocket money to their children which would be more secure and easily monitored when not in cash but card.

What are the RBI guidelines you have adopted to secure your platform?

Proper KYC through Aadhar verification, monitoring of transaction, secured data, we ensure that customer’s data is safe.

What are the recent developments at your company?

We are associating with fintech to launch branded smart cards. Also, we are consistently working on enhancing the technology of the product.

Any latest round of investment?

We recently raised USD 400k in Bridge Round from We founder circle.