Cross-border transactions will revolutionise ONDC, according to CEO T Koshy.

The CEO of ONDC believes that cross-border transactions will be a game-changer for the company and its users. By enabling transactions between different countries, ONDC aims to provide a seamless and secure platform for users to conduct business globally. This will not only benefit individuals and businesses but also contribute to the growth of the global economy. With ONDC's innovative approach to cross-border transactions, users will be able to send and receive funds quickly, easily, and at a lower cost compared to traditional methods.

Over the next two years, ONDC anticipates reaching 900 million buyers and 1.2 million vendors in India.

Recently, Proxtera, a business-to-business network located in Singapore, and the government's Open Network For Digital Commerce, a decentralised protocol for e-commerce, mobility, and other online platforms, carried out their first cross-border transaction. T Koshy, CEO of ONDC, anticipates that cross-border transactions on the network will keep expanding quickly, allowing businesses to offer their goods internationally and increasing exports.

Koshy anticipates that ONDC would increase e-commerce penetration in India to 25% from the present 4-5%. Rural markets, which he claims have the potential to surpass urban growth in the medium future, will contribute to this increase.

Additionally, ONDC has been growing in the mobility sector and is integrating several modes of travel to provide a single booking system.

Launched in 2021, the network experienced its first 5 million ride-hailing and e-commerce transactions in December.

How do you think online sales and e-commerce will change in India? In terms of the upcoming stage of growth, what early patterns are you noticing?

I believe there is much space for improvement. In a paper jointly released by ONDC and McKinsey, we looked at India's potential for e-commerce. McKinsey estimates that ONDC will make it possible for India's digital consumption to increase fivefold to $340 billion. In the next two years, this will reach 900 million buyers and 1.2 million vendors with a gross merchandise value of perhaps $48 billion, increasing the penetration of e-commerce to 25% from roughly 4-5% presently.

In the near future, the addition of cross-border trading is expected to be a game-changer. Any seller can freely offer goods and services to customers anywhere in the world thanks to the ONDC network protocol, which has no geographical limitations. Notably, the network is moving closer to expanding this programme after completing its first cross-border transaction with Singapore successfully.

Moreover, ONDC is working to establish a network of last-mile service providers to facilitate commuters' movement between and within cities. What is the overarching strategy?

With the fastest adoption rate in this category, the network is ready for mobility and is most prevalent in Bengaluru, Mysore, and Kolkata. Every state transportation agency that the team works with is partnered with to enable the integration of all means of transportation, including as buses, metros, and metered taxis and auto-rickshaws.

We're aiming for multi-modal transit, which combines several modalities into a single reservation. It will take some time, though.

Do you believe ONDC will eventually serve as a one-stop shop for all needs related to online trade?

A network's backbone is ONDC. It is intended to facilitate the sale of any catalog-able good or service and will open up a plethora of additional use cases. But likening it to a "one-stop-shop" is merely thinking along platform lines once more. We will facilitate hitherto unheard-of levels of invention.

Do purchasers and sellers notify ONDC of the contents of their buyer or seller databases? Does this kind of requirement exist?

We don't gather any data of this kind. An industry standard for communication between disparate digital systems is ONDC. We don't gather this information or directly enrol buyers or vendors.