Unified Payments Interface (UPI), developed by the National Payments Corporation of India (NPCI), is a popular mobile-based real-time payment system in India that enables instant personal and merchant payments. It facilitates inter-bank, account-to-account (A2A) transactions, and handles over 75% of the country’s retail digital payments, with monthly transactions surpassing 14 billion. With over 350 million users, UPI plays a crucial role in revolutionising India’s digital payments ecosystem. With its complete interoperability, UPI has democratised payments in India. Based on principles of collaboration and inclusion among ecosystem participants, it drives innovation through its platform-centric approach.
NPCI’s international arm, NPCI International Payments (NIPL), extends this vision globally. Through strategic partnerships, NIPL aims to build interoperability for UPI to facilitate peer-to-peer (P2P) and peer-to-merchant (P2M) cross-border payments. Furthermore, it collaborates with foreign central banks and governments to help them develop sovereign, interoperable, and robust payment systems like UPI.
UPI supports P2P and P2M transactions. For P2P payments, it runs on aliases, eliminating the need to share bank accounts or card numbers. For P2M payments, it leverages QR codes, providing a simple, safe, and secure payment and collection method.
For merchants, UPI simplifies the collection of payments directly from the customer’s bank account, eliminating the need to handle cash or store sensitive customer information. This mitigates risk and enhances customer trust. The UPI ecosystem supports merchants of all sizes, from small retail shops to large ecommerce businesses, offering a robust platform for handling monetary transactions efficiently. With over 340 million QR codes at various merchant locations, UPI provides instant, 24/7 payments for consumers across India.
UPI supports multiple use cases such as P2P, P2M, Request-to-Pay, UPI on Delivery, Standing Instructions, IPO investments, etc. To elaborate on a few, Request-to-Pay enables individuals or merchants to request money from the payer via UPI, simplifying transactions. With recurring payments, UPI supports auto-debit functionality for utilities, entertainment subscriptions, and other services. Users can also link their RuPay credit card to UPI apps for secure transactions without needing the physical card. Additionally, with UPI for International Payments, Indians can currently pay select merchants in Bhutan, France (ecommerce), Mauritius, Nepal, Singapore, Sri Lanka, and the UAE.
UPI aims to provide a secure and seamless payment experience, and to make India a ‘less cash’ society, ensuring that every citizen has access to digital payment options.
This editorial piece was first published in The Paypers' Unlocking the Potential of A2A Payments Report 2024 – Changing the Way We Pay and Get Paid, which taps into the fast, ever-expanding A2A payments industry, being the ultimate source of information for businesses looking to grow their consumer base.
Mr. Ritesh Shukla is the CEO of NPCI International Payments Limited (NIPL), overseeing business strategy, leading business development, and driving profitability by deploying NPCI's technology and solutions in international markets. His responsibilities include engaging and collaborating with players in the payment ecosystem to drive business strategy and achieve growth. With over 20 years of work experience, his expertise includes managing country business, leading business development, and relationship management.
NPCI International Payments Limited (NIPL) was incorporated on April 3, 2020, as a wholly-owned subsidiary of the National Payments Corporation of India (NPCI). As NPCI’s international arm, NIPL is devoted to deploying NPCI’s indigenous, successful real-time payment system – Unified Payments Interface (UPI) – and card scheme (RuPay) outside of India. NPCI has successfully developed and proved its products and technological capabilities in the domestic market by transforming the payment segment in India. Currently, there are several countries that seek to establish a real-time payment system or a domestic card scheme. NIPL, with its knowledge and experience, can offer these countries technological assistance through licencing and consulting for building real-time payment systems to meet the rapidly evolving needs of fast-growing global businesses. NIPL focuses on transforming payments across the globe through technology and innovation. It will not only enable payments for Indians but also support other countries by enhancing their payment capabilities using technological assistance, consulting, and infrastructure.
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