India’s Unified Payments Interface has surpassed Visa and it has become number one real-time payment system in the world.
About Unified Payments Interface (UPI)
- It is an instant payment system developed by the National Payments Corporation of India (NPCI), an RBI regulated entity.
- It is built over Immediate Payment Service (IMPS) infrastructure.
- Digital Foundation Behind UPI:-
- Pradhan Mantri Jan Dhan Yojana (>55 crore bank accounts opened).
- Aadhaar and Digital Identity (secure and digital authentication)
- Connectivity & 5G Revolution (made digital services accessible)
How is UPI changing the payment landscape?
- Acts as a Digital Public Infrastructure (DPI): It is based on open-source technology and leads to lower cost of onboarding and integration unlike earlier closed loop Systems(CLS).
- CLS is a type of payment network in which all participants (e.g. payer, payee, and system facilitating the transaction) operate within a single, unified network.
- Easy Integration: Existing systems (legacy & new) can be easily integrated supporting both real time and batch settlement functionality.
- Interoperability : It increases users “freedom to choose” and also facilitates easy entry of new providers.
- Cross border settlement: Enables cross border transfers for multiple countries on a platform-based approach
- Global Expansion: Operational in Singapore, UAE, Bhutan, Nepal, Sri Lanka, Mauritius, France and Namibia.
- Facilitates payments in Indian regional languages.
