DPDP Act And Cross-selling By Fintechs

Continuing on the fintech and DPDP series, our partners Sreenidhi Srinivasan and Aparajita Srivastava speak about using data (collected for one purpose) to cross-sell/up-sell other products. For example, what if, as a platform, you'd like to use a customer's payments/transaction data to cross-sell an insurance product?

Cross-selling is a common platform strategy. Digital payment platforms, like UPI or PPI (e-wallets) providers, are a cash-burn business. Platforms dole out massive cashbacks, and incentives to acquire and maintain an active user base. So, you build a payments business which serves as a data mine. You gather large amounts of data about your users and merchants. And then use this data to cross-sell other more lucrative products. Like loans, investments, and insurance. Your entire payments