UPI(Unified Payments Interface) has been the go-to payment method for Indian users today. People have started using their smartphones as virtual debit cards, thanks to the hassle-free QR(Quick Response) codes that pay faster than cash. UPI technology enabled the seamlessness of P2P and P2M transactions which skyrocketed the usage of digital payments in the country. As of April 2022, 316 banks partnered with UPI, which induced 558 Cr Transactions worth 9.8 lakh crore rupees. A report by Jeffries stated that UPI accounted for 50% of all retail transactions in India in FY22, almost 4.5 times the debit and credit transactions.
How did UPI become successful
NPCI introduced UPI in April 2016, and since then, it has quickly gained popularity to become a roaring success. Soon after its launch, Paytm pioneered the system and prompted India towards digitalisation via its “Paytm Karo” campaign. The company’s confidence and vision in QR codes became the contributing factors to the success of UPI. Today, we find people scanning the codes through their phones everywhere, from malls to grocery stores to even medical centres. One of the
reasons for this paradigm shift in digital payments were UPI’s ease of use and its perk of being free of cost. The developers of UPI prioritised user experience over everything else. NPCI, the umbrella organisation of digital payments, follows the three-zero approach for UPI:
- Zero-touch – Contactless transaction
- Zero time – Quicker than cash
- Zero cost to the customer – No transaction charges
At the India Digital Summit, Dilip Asbe, CEO and MD of NPCI, said they aim to achieve one billion daily transactions in the next 3-5 years.
UPI’s partnership in France
India’s UPI spread its wings by crossing the border and partnering with countries like UAE, Singapore, Bhutan, and Nepal. Now, the Indian handcrafted innovation has entered Europe by joining hands with Lyra Network, a French Payments solution network.
The growth of UPI in the coming phase will be driven by its foray into the Autopay feature, launched under UPI 2.0. One can use the e-mandate to automate recurring payments without attracting many charges. These monthly payments can cover everything from timely bill payments, to subscriptions and SIPs, among others. UPI is a futuristic technology that will keep evolving with time through innovations and features. The mechanism is sure to induce smooth and seamless functioning in the payments segment of the economy.