If someone had told me a decade ago, that I could go down to the market and get my weekly groceries with zero cash in my wallet and just my phone, I would have laughed them off.
Yet, this is a luxury that is our reality at this very moment. All thanks to UPI.
We did not realise it when it was introduced. But gradually, UPI has carved out an irreplaceable position in all our lives. Digital transactions have never been easier. And it is only now that people are starting to really understand the impacts of UPI.
Think about it. How long has the Jan Dan Yojana been in existence?
Everyone has had access to a zero balance savings account. Yet, it is only after the acceptance of UPI that digital transactions have really cemented their position in our lives.
What impact has UPI had on India?
UPI’s impact on the Indian economy has been enormous. It has brought about a significant shift in the way transactions are carried out, from cash-based to digital payments. UPI has made it easier for people to make transactions, especially in remote areas where there are no bank branches.
The sheer convenience of UPI is hard to beat. You don’t need to carry cash or any debit card. All you need is your phone, and you always have your phone anyway. It is easier and safer.
And we are just starting to realise the potential of UPI. Take the link with Singapore’s PayNow network, for instance. You can now make international transactions directly through your UPI account.
Can you imagine the implications? Cross border trade will blow up like never before!
“The winds of the e-commerce world are truly beginning to change with immense innovation, and this collaborative launch is a testament to it. Businesses also face five major challenges such as cost, security, time, liquidity & transparency while making cross-border payments. This initiative will further solve most of these problems allowing more businesses to expand their reach in other markets.” — Chirag Taneja, Gokwik
UPI is starting to enter the global transactions market, so we can expect sharp growth in the Indian fintech sector. The addressable market just multiplied several-fold, and the potential for growth is enormous.
Another advantage is that it has opened up opportunities for small businesses and merchants to participate in the digital economy.
UPI enables small merchants to accept digital payments, eliminating the need for expensive point-of-sale terminals. Whether it be a vegetable seller at the local market or the local pan shop at the corner, UPI is used by all. This has helped to boost financial inclusion in India and increase the participation of small businesses in the digital economy.
Let’s talk numbers, now, to add some perspective to this.
In 2022, UPI processed a record-breaking 29 billion transactions, making it the world’s most popular real-time payment system. This is a sheer testament to the growing maturity of India’s digital payments ecosystem. This adoption has been fuelled by ease of use, convenience, and the government’s push towards a cashless economy.
So immense is the success of the UPI system that other countries are now starting to follow suit. According to the New York Times, several countries like Indonesia, Mexico, and Nigeria, are looking to replicate India’s UPI model to modernize their payment systems.
Quite a proud moment, isn’t it?
UPI is changing the face of the Indian digital payment ecosystem. All that remains to be seen is how far we can go with it.