The UPI (Unified Payment Interface) crossed approximately Rs.1 lakh crore budget of trades for the 1st time in December 2018.
This number is higher than all credit as well as debit card transactions. That is done in a month vial all the merchants (POS) across the country. In terms of both volume and value. Moreover, unlike several other countries, India’s landscape for digital payments is mounting at a rapid speed. Not by eliminating the banking system and the safety net that is provided, but then by creating the UPI supports over the nation’s banking bases.
Although a larger amount of these transactions might be recognized for a number of incentive bids. That comes from well-funded companies in the network of payment, the whole process has ultimately led to greater adoption of digital payments amongst customers.
Also, there has been substantial growth in client education as well as habit development amongst the users. Presently, instantly flowing cash from 1 bank account to another is not any magic. Unlike it had been after the launch of “Chiller” that has an alike suggestion of instant transaction back in early 2015.
Transfers of money without loading money in e-wallet has turned out to a democratic method. Permitting millions of Indians on the way to financial inclusion. Moreover, it is worthy to observe how in just of a couple of years, UPI has achieved such a noteworthy scale. As well as critical velocity something that card linkage took decades to crack.
Lining up a number of banks in a single platform, mainly when they observe it as a probable risk to their main business. Moving ahead, products of UPI will probably continue to develop more traction in comparison to e-wallets. Moreover, e-wallets will soon become restricted to certain niche use cases.
From the protection point of view, the National Payment Corporation of India (NPCI) is taking progressive steps for reducing the collection of spam requests. Forbidding round-tripping of money to the same account, restraining overall transactions from one account to a maximum of only ten times within 24 hours.
The latest instruction with a set of alterations around the process of on-boarding will definitely make substantial developments in security. And get down the fake transactions (generally involves duplication of SIM & convincing the person for sharing card details, OTP, etc) noticeably.
UPI can typically refer to as peer to peer transactions as of now. Moreover, with the extensive adoption of UPI as a payment method by a large number of online retailers. Who are choosing to use QR codes either statically or else dynamically utilizing mobile apps or POS machines. Aggregators of payment making it as a default part of their billing offering. The prevailing trend of peer to peer destines to transform in a great way in the year 2019. But, the biggest win for UPI this year will depend upon RBI reviewing its decision about UPI based commands. That would otherwise be healthy for the entire FinTech industry particularly in the light of the latest limitations. About using Aadhaar for e-KYC as well as e-Signature.
Furthermore, a huge number of opportunities expects to arise for small start-ups. In terms of loyalty, credit, wealth management, affordability, and micro insurance, etc. From about 600 million transactions in December 2018 to more than 1.5-2 billion monthly transactions by the end of 2019. It will be a greatly rewarding mode of entering to a digital economy.