UPI Will Make Mobile Payments Easier Than Ever!

RBI Governor, Raghuram Rajan, recently launched the Unified Payment Interface (UPI) along with Nandan Nilakeni, Chairman of the Unique Identification Authority of India (UIDAI).

UPI is a new way in which you can electronically transfer funds or make payments. Initiated and implemented by the National Payments Corporation of India (NPCI), UPI will be based on the Immediate Payment Services (IMPS) infrastructure. IMPS allows you to immediately transfer money from a bank / wallet to other accounts. UPI will be an enhanced version of IMPS, where you can send as well as request and receive money.

Under UPI you will have a single identity and password for using multiple bank accounts. The best part? UPI will be primarily for smartphones.

UPI is going to be the next big thing in mobile payments and is expected to change the face of how payments are done through smart phones. As of now 29 banks are going to adopt UPI while others are expected to follow suit. So, shortly you could try UPI for auto debiting your loan account or paying your insurance premium.

So how is a Unified Payment Interface, going to help with mobile payments?

Instant Transactions – Earlier, you might have had a few transactions on websites, especially shopping sites, where your transaction either failed or was declined, due to multiple layer connections. These are connections that exist between the shopping site, payment gateway and the bank. UPI seeks to make the connections simpler and quicker so that the process becomes more efficient and shoppers can make instant payments.

Multiple Accounts, One ID – At present, you cannot use the app of one bank to access the account of another bank. UPI will change this. Since UPI is said to be interoperable, you will be able to make payments using multiple bank accounts through your smart phone. This is essentially because your multiple bank accounts get linked to this one interface. Currently, smart phone usage in India is pegged at 30 crore and UPI will help tap this potential segment to get on to digital banking.

Find out more about how UPI is going to change the face of how payments work HERE.

Additional Reading: 8 Instant Money Transfer Solutions You Didn’t Know About

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