The first major step taken by India to achieve a cashless economy was the introduction of the Unified Payment Interface (UPI). It is an instant real-time payment system developed by the National Payments Corporation of India (NPCI) facilitating inter-bank peer-to-peer (P2P) and person-to-merchant (P2M) transactions. The interface is regulated by the Reserve Bank of India (RBI) and works by instantly transferring funds between two bank accounts on a mobile platform.
Unified Payments Interface (UPI) is a system that powers multiple bank accounts into a single mobile application (of any participating bank), merging several banking features, seamless fund routing & merchant payments into one hood. It also caters to the “Peer to Peer” collect request which can be scheduled and paid as per requirement and convenience.
With the above context in mind, NPCI conducted a pilot launch with 21 member banks on 11th April 2016.
The proportion of UPI transactions in the total volume of digital transactions grew from 23% in 2018–19 to 55% in 2020–21.
Benefits for merchants:
Seamless fund collection from customers - single identifiers
No risk of storing the customer’s virtual address like in Cards
Tap customers not having credit/debit cards
Suitable for e-Com & m-Com transaction
Resolves the COD collection problem
Single click 2FA facility to the customer - seamless Pull
In-App Payments (IAP)
If you would like to add this payment method, kindly contact your Account Manager.