The UPI Story

Introduction

UPI has come a long way from humble beginnings in 2016.It initially started as e-payments system like paytm,razorpay,instamojo etc.The framework of UPI inspired Google to use NPCI as a launch pad to revolutionize digital payments across US.You can research about NPCI on Google.UPI has garnered a huge market reach due to third-party apps like paytm and phone pe. In the latter half of FY18, Google Pay became the first overseas player to join the UPI ecosystem. 

UPI Framework

https://byjus.com/The current year has seen has processed transactions worth Rs 1.09 trillion.Industry experts have also supported the rapid growth of the UPI platforms.During FY19, UPI clocked 5.39 billion (5391.52 million) transactions amounting to Rs 8,76,970.72 crore which translates to a 490% volume growth and 700% value growth.This was the period too when India’s central bank and NPCI had collectively taken some positive steps such as waiver of MDR charges, onboarding more banks and enabling recurring payments to ramp up growth of UPI.It is worth noting that Google pay,Paytm and Phonepay accounted for majority market share in UPI.UPI apps are very similar in interface and usability when compared with cash wallet apps.It allows you to fulfill your obligations and get payment directly into your bank account and is useful for making small payments to retailers.Its usage has increased significantly since the global recession triggered by the pandemic. It can provide you a platform to connect with customers,small business and for purchasing e-learning softwares.

WHY UPI

How is it Unique?

• Immediate money transfer through mobile device round the clock 24*7 and 365 days.
• Single mobile application for accessing different bank accounts.
• Single Click 2 Factor Authentication – Aligned with the Regulatory guidelines, yet provides for a very strong feature of seamless single click payment.
• Bill Sharing with friends.
• Best answer to Cash on Delivery hassle, running to an ATM or rendering exact amount.
• Utility Bill Payments, Over the Counter Payments, Barcode (Scan and Pay) based payments.
• Merchant Payment with Single Application or In-App Payments.

Benefits of using UPI

• Affordability: The UPI is the cheapest way of fund transfer. It is as cheap that you can transfer Rs 100 sitting at home. The transaction charge for the same is around 1-2% only. UPI has the potential to take over all other methods of money transfer.
• Instant Transfer: UPI is very fast. It transfers money instantly. The UPI works 24 x 7. The NEFT can take up to 12 hours for the fund transfer. There is a 30-minute waiting period for the NEFT and IMPS registration.
• Bank Details Not Required: The payment through the UPI does not require the card details or bank account details. You have to only give the virtual payment address. the virtual payment address is similar to our email ID.E.g. Sunil@Gmail.com can be your UPI ID and it results in quick transfer.
• One UPI App-multiple accounts: You do not need different UPI app for a different bank account.  You can link many bank accounts in a UPI-based app.
• Money collection platform: Having a UPI app can enable you to start a freelancing business without much monthly investment. You can learn a new skill and monetize your content by getting money delivered to your bank account. It can enable you to pay small-time expenses in a cashless manner.

The digital leap

A majority of digital transactions in India is fulfilled by UPI. According to a recent KPMG report, the global digital payments market is expected to touch $10.07 trillion by 2026. From close to 1.5 million locations accepting digital payments in 2016-17, the number of merchants accepting digital payments modes has increased to over 10 million. Converting offline payments to online mode will be important in achieving this growth. The recent cases of phishing attacks and data leaks suggest that cybercriminals find innovative ways to dupe innocent customers. However, the good news is that digital forensics is keeping pace with fraudsters and making life difficult for them. The key takeaway here is that today, there is a proliferation of digital transactions accepted at the point-of-sale, online and on-the-go.With the right vision, this future holds great opportunities for banks, credit card companies and new entrants.

The digital oppurtunity

We are in the midst of a digital transformation in the way we are leading our lives and changing dynamics of personal and business relationships. The current economic crisis accentuated by the nationwide lockdown has made it imperative to go cashless.DMRC has also introduced a digital system for accepting payments for its services. Its time to go digital or be left behind.

Ready to change ?

Join the digital revolution in UPI which is making other mobile wallets secondary choices. Google pay is a secure app for money transfers, bills and recharges.