Most experts believe that the real-time payment system is the financial revolution that was witnessed in post-independence India. The Unified Payments Interface, aka UPI, came as a boon for the country. Guess what The epidemic is not the only one that has forced the UPI market to take a big leap. The UPI system in India has doubled with two major events.
Although it has been more than a decade since UPI entered the country, it was in 2016 when digital payments first surged. While the country was going through demonetization, it was a new-age technology that gave consumers more options in the place of payment. Digital payment systems have propelled the country to become one of the fastest-growing financial economies in the world. That being said, change is still ongoing because the new economy needs a policy framework and authoritative system.
One of the market analyses on how Indian consumers were attracted to cashback, rewards, and offers became popular. This has become a central motivating factor in attracting smartphone customers with readily available cheap internet. Phone Pe has launched a COD feature for its financially conservative users who are more comfortable with payments at the time of delivery. It allows customers to pay digitally at their delivery home!
UPI – Benefits The Participants Of The Ecosystem
- Benefits of UPI for Banks:
- Is a universal application for a transaction
- This is a single click to factor authentication
- It is safer and more secure
- It enables simple transactions
- Unique identifier
- Payment support single
- UPI Benefits for Traders:
- Easy fundraising
- There is no risk in storing the customer’s virtual address
- This is suitable for e-com and m-com transactions
- Tap customers do not need a credit/debit card
- In-App Payments (IAP)
- It eliminates the hassle of cash on delivery
- Benefits of UPI for customers:
- It is a single application for accessing different bank accounts
- Twenty-four-hour availability
- You can easily make a complaint directly from the mobile app
- Using a virtual ID is secure
Boost digital payments
Regulatory approvals for offline digital payments have once again established India as a nerve center for innovation in world-class digital financial services. We also believe that this is the largest growth in digital payments in recent years anywhere in the world. In terms of impact, we believe it could be as big as the launch of the Unified Payments Interface (UPI) in 2016, a free-of-cost digital interbank fund transfer system that has been instrumental in bringing India to number one. In digital payment transactions around the world.
Today, UPI is the single largest retail payment system in the country in terms of more than combined transactions on debit and credit cards and the volume of monthly transactions on UPI. In addition, 50% of all UPI transactions are worth up to Rs.200 in any case. UPI has proved so successful that many countries around the world, including Brazil, Singapore, Saudi Arabia, the US, and the European Union, want to replicate the system in their jurisdiction.
Despite the growing number of Internet users in India, a large population still does not use the Internet. In addition, lack of education has made Indian smartphone consumers victims of e-fraud. The lack of a regulatory system has created holes in the wildly growing e-payment industry. In short, India has come a long way in the development of the digital economy. However, the road is not too short. Industry experts are waiting for innovations and regulations that bridge the gap in the Indian payment space.
Over the last 5 years, the UPI framework in India has leapfrogged and made it easier for merchants and consumers to interact with each other from the comfort of their mobile screens. As the government continues its efforts to nurture India’s digital economy, We all are certainly optimistic about a brighter future.
– Amrin Ahmed