Definition
ONDC
The Open Network for Digital Commerce is a government-backed open protocol that lets buyers and sellers transact across different apps, unbundling e-commerce from closed platforms.
ONDC is an initiative to make e-commerce interoperable: instead of a buyer and seller needing to be on the same app, ONDC sets open standards so a buyer on one app can discover and purchase from a seller listed on a completely different app.
Backed by the government and incubated through a not-for-profit company, it aims to democratise digital commerce, lower seller dependence on a few dominant platforms, and bring small retailers online. Payments, logistics and catalogues are all modular participants on the network.
For finance, ONDC also extends to credit and financial services as network offerings, allowing loans and other products to be discovered and availed across participating apps.
Related terms
- Payment Aggregator (PA)A payment aggregator is an RBI-authorised entity that lets merchants accept various digital payments without each building their own bank integration, pooling and settling funds to them.
- Embedded FinanceEmbedded finance is the integration of financial services — payments, credit, insurance — directly inside non-financial apps and platforms, at the point of need.
Plain-English explainer from The Dispatch Investors Encyclopedia. General information, not financial advice.