Mankind has come a long way from bartering items to employing currency. We live in a digital age where everything is at our fingertips, and the internet has made our lives easier than ever before. From purchasing food online to paying bills with a single click, digital payments have played a critical role.
Payment apps such as Phonepe, Google Pay, Paytm, and others have become ingrained in our daily routines. The Unified Payment Interface (UPI) is a single-interface payment system designed by the National Payment Corporation of India that is used in these apps (NPCI). UPI is a smartphone software that allows users to send money across bank accounts.
In the last year and a half, tens of thousands of businesses across hundreds of industries have seen the value of UPI autopay and have switched to it. Let's take a look back at the growth and development of this game-changing payment mechanism in India, as well as where it's headed. The invention of UPI has revolutionised recurring payments and taken them to new heights.
Simplified transactions and ease
The UPI has been a benefit to Indian customers. It has simplified transactions by making instant payments available 24 hours a day, seven days a week, and by requiring only a virtual payment address to make payments, it has eliminated the need for customers to enter bank details or other sensitive information each time they initiate a transaction.
Convenient and allows better communication with banks
UPI is also unusual in that it allows banks to communicate with one another. Unlike previous e-wallets, users no longer need to keep money in a separate wallet for each app.
New and evolving features
A user can also pay bills and make payments to merchants with the release of UPI 2.0. If you have recurring payments, you can also set up autopay.
A boon to businesses and new enterprises
Many new enterprises have thrived thanks to UPI. It has aided the growth of many Fintechs and startups in India. The UPI network enables banks, e-wallets, and payment service providers to connect to the framework and construct apps using a smartphone device. It also serves as a payment portal for the domain.
Massive growth backed up by ease of use
According to statistics from EY, digital transactions based on UPI surged 110 percent in volume and 109 percent in value between June 2020 and June 2021 if current trends continue over the next few years, UPI’s contribution to the nation’s overall digital payments industry will expand dramatically. The continuous rate of growth seen in UPI payments might ensure up to 18 percent of the country’s total target of 30 billion transactions is attained in the coming years.
In the past year, UPI has grown at an exponential rate, capturing a substantial share of the market from firms such as PhonePe, Paytm, and Google Pay. Consumer interest in paying bills, charging telephones, and purchasing non-essential goods on e-commerce platforms has surged as a result of the surge in UPI transactions. UPI Payments has had a significant impact on the Indian market, influencing consumer payment methods and e-commerce sites.
The government intends to deploy UPI to facilitate cross-border transactions while also providing a robust risk management system in the event of fraud. UPI represents a country's progressive vision as it moves toward a digital economy. The pandemic has also contributed significantly to India's digital economy. UPI transactions are expanding at a fast pace and have a lot of room for expansion. And it has the potential to make a big contribution to India's GDP.
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