India is going through a digital architecture overhaul, and APIs are the pipes. The shift toward API first infrastructure is no longer a buzzword, it’s the default. Whether it’s UPI, Aadhaar, DigiLocker, or the Account Aggregator (AA) ecosystem, APIs are the foundation on which new-age financial, healthcare, and identity services are being built.
But while everyone’s busy building APIs, very few are talking about how to price them effectively, especially in India.
India’s API Movement: Why It’s Now or Never
India Stack showed us what’s possible when APIs become public utilities. With 18+ billion UPI transactions a month (NPCI, May 2025), real-time payments, instant KYC, and consent-based data sharing are now everyday experiences.
The EPAAIndiaConnects Report pegs India’s digital economy at $1T by 2030, and APIs are not just plumbing, they’re monetizable assets. But here’s the catch, there’s no standardized playbook for how to price them in India.
API Pricing Models in Play
Let’s quickly map the models most commonly seen across Indian fintech, SaaS, and BFSI platforms:
Freemium: Access for devs, build early loyalty (eg. Vahana Hub, Setu)
Per-API Call: ₹1–₹25 per hit depending on value (PAN, Aadhaar, Credit APIs)
Tiered Subscriptions: Fixed price + usage slabs (Rebrandly, plaid)
Revenue Share/ Outcome-Based: Pay only if business is generated (esp. in embedded finance, credit underwriting)
What Determines API Pricing? (Beyond Just Tech Costs)
API pricing isn’t just about infrastructure and uptime. It’s about value, scarcity, and differentiation. Here’s what actually lets you charge more:
Proprietary Data or Intellectual Property (IP)
APIs that provide access to exclusive datasets or proprietary algorithms offer unique value propositions. Such APIs are not merely conduits for data retrieval but encapsulate specialized knowledge or processes that are difficult to replicate.
Let’s take an example of an API that delivers a proprietary credit scoring model that is developed from years of financial data analysis.
Unlike generic credit score APIs, this service offers nuanced risk assessments tailored to specific market segments. This provides lenders with deeper insights into borrower behavior. The uniqueness and depth of this information justify a premium pricing model.
Speed and Reliability
In time-sensitive industries like BFSI, the speed and reliability of an API are paramount. Moreover, APIs that guarantee low latency and high uptime can significantly enhance user experience and operational efficiency.
Example: An API facilitating real-time stock trading must process requests in milliseconds to capitalize on market movements. A delay of even a second can lead to missed opportunities or financial losses. Therefore, such APIs often come with stringent SLAs and are priced higher to reflect their critical role in high-stakes environments.
Information Density
The value of an API is not solely determined by the volume of data it provides but by the relevance and actionability of that data. APIs that deliver comprehensive, decision-ready information enable faster and more informed decision-making processes.
Example: An API that not only verifies a user’s identity but also assesses document authenticity, extracts key data points, and flags potential fraud provides a holistic solution. This enriched functionality reduces the need for multiple API calls and streamlines workflows, warranting a higher price point due to the added value it delivers.
Complexity and Functionality
APIs that handle intricate operations—such as multi-factor authentication, comprehensive financial analytics, or consent management—demand substantial development and maintenance efforts. These APIs often integrate multiple systems, manage complex workflows, and ensure compliance with stringent regulations.
Example: Consider an API that facilitates consent management within the Account Aggregator framework. Beyond merely capturing consent, it manages consent lifecycles, ensures regulatory compliance, and integrates with various financial institutions. This multifaceted functionality justifies a premium pricing model.
Market Availability and Demand
The number of providers offering a similar API service significantly influences its pricing. In a market saturated with providers offering comparable APIs, the competition drives prices down. Conversely, if your API offers a unique service with few or no competitors, you can command a premium price due to its exclusivity.
Example: Consider an API that provides real-time access to a newly digitized government database, such as land ownership records in a specific region. If your API is among the first to offer this service, with limited or no competition, the scarcity and high demand for this data allow you to set a higher price point.
Regulatory Compliance and Security
In sectors like BFSI, adherence to regulatory standards and ensuring data security are paramount. APIs that are compliant with regulations such as the RBI guidelines and incorporate robust security measures add significant value and can be priced accordingly.
Example: An API that not only performs eKYC but also ensures compliance with the latest RBI mandates, incorporates advanced encryption, and provides audit trails and offers enhanced trust and reliability. Such features warrant a premium pricing structure.
Support and Service Level Agreements (SLAs)
The level of support and the robustness of SLAs associated with an API can influence its pricing. APIs backed by dedicated support teams and stringent SLAs offer greater reliability and assurance to clients.
Example: An API provider offering 24/7 support with guaranteed response times, proactive monitoring, and uptime commitments provides added value to clients, especially in mission-critical applications. This enhanced support framework justifies a higher pricing tier.
Ground Reality in India: What’s Holding Us Back?
Lack of Benchmarks
Everyone’s building APIs. Few are publishing prices. There’s no NASSCOM dashboard where a founder or product manager can compare market rates across categories. That opacity kills pricing maturity.
Cost Push from Large Enterprises
Indian BFSI buyers are notorious for grinding prices down. For APIs with regulatory mandates (e.g., CKYC, PAN), they expect sub-₹5 rates, even if infra costs more.
Fragmented Usage Visibility
Most companies can’t predict usage volume accurately. That makes it hard to price sustainably. Infra costs spiral before monetization catches up.
Regulation is Still Shaky
In the Account Aggregator ecosystem, pricing depends on consent flows, frequency of pulls, and volume, but the policy playbook is still evolving.
So, What Should Indian API Providers Do Differently?
Here’s a directional framework if you’re building or monetizing APIs in India:
The Platform Layer is Next
We’re moving towards platformized distribution of APIs. The platforms don’t just solve for discovery, they’re also solving for monetization, analytics, and reliability tracking. Think API marketplaces like:
1) Vahana Hub (Decimal): Curated stack for BFSI-ready APIs
2) Rapid API: Global, multi industry API marketplace with pricing transparency
3) Plaid: Financial inclusion via curated API access
These Platforms are pushing transparency via public rate cards (Rapid API), usage insights, and frictionless billing-as-a-service.
This means:
– Buyers compare APIs on features, SLAs, and APIs all in one catalog.
– Pricing becomes a competitive weapon, not a hidden battlefield.
Actionable Playbook: How to Build Your Pricing Strategy
1) Catalog your API types whether free sandbox? raw data? enriched?
2) Measure your value by defining business outcomes (e.g., “₹x savings per 1s latency improvement”).
3) Choose pricing models per segment
– Developer friendly – freemium + metered.
– Enterprise – SLA-backed tiers + outcome share.
4) Package bundles – Side channel support, SLAs, dashboards, analytics.
5) Publish transparent rate cards. These anchor values help internal and buyer confidence.
6)Iterate based on usage data, both too low and too high feedback signals needed.
Final Word
If you’re building APIs in India, here’s the blunt truth: you can’t scale without pricing clarity. It’s time we stopped pricing APIs like plumbing and started pricing them based on outcomes, IP, and business value.
To end the plumbing mindset, treat your API like a product:
a) Map features → SLAs → outcome guarantees → price.
b) Charge for both access and impact.
c) Work with constraints – cover infrastructure, fund platform development, and build cash flow.
Having built this analytical, layered pricing strategy, you’ll move from billing per hit to monetizing impact. Those who figure this out first won’t just build better APIs, they’ll build stronger revenue engines
Frequently Asked Questions
1. Why is India shifting towards API-first infrastructure?
Because it allows faster, modular, and scalable development—powering systems like UPI, Aadhaar, DigiLocker, and the Account Aggregator framework. APIs are the backbone of this transformation.
2. Is there a standard way to price APIs in India today?
Not really. There’s no unified pricing framework, which leaves most API providers experimenting or underpricing, especially when dealing with large enterprises.
3. What are the common API pricing models being used?
You’ll find models like freemium (to attract early developers), per-API-call pricing, tiered subscriptions, and outcome-based pricing—especially in embedded finance.
4. What makes some APIs more expensive than others?
It’s not just about uptime or hosting. APIs that deliver proprietary data, have faster response times, or bundle value-added services (like fraud detection) tend to command higher prices.
5. Why do enterprises push back on API pricing?
Many Indian BFSI players expect extremely low rates—sometimes under ₹5—especially when APIs are regulatory must-haves. This creates unsustainable pressure for providers.
6. What’s stopping Indian API monetization from maturing?
A few things—lack of visibility into usage, limited pricing transparency across the market, and unclear regulatory guidelines (especially in new ecosystems like AA).
7. How can API providers justify premium pricing?
By going beyond just data pipes. APIs that provide decision-ready insights, ensure compliance, or support complex workflows like consent management can charge more.
8. Are platforms like RapidAPI or Vahana Hub changing the game?
Absolutely. They’re helping bring structure—offering discovery, analytics, transparent pricing, and even billing services—making it easier for providers to scale.
9. What should a solid API pricing strategy include?
Think bundles, value-based pricing, flexible tiers, published rate cards, and dashboards for usage visibility. It’s about treating your API like a product, not just tech.
10. Why should we move away from ‘per hit’ billing?
Because real value lies in the outcomes your API delivers—be it faster onboarding, reduced fraud, or better lending decisions. That’s what businesses are truly paying for.
-Saloni Gautam (Senior Manager, GTM Vahana Hub)
