UPI : The Pride Of India

UPI, Almost every one has been using this tremendous system, from Rich to the one selling in stalls.

But what is UPI?

Unified Payments Interface is an instant real-time payment system developed by National Payments Corporation of India. The interface facilitates inter-bank peer-to-peer and person-to-merchant transactions. UPI is an open source application programming interface that runs on top of Immediate Payment Service.

Unified Payments Interface (UPI) is a system that powers multiple bank account transactions into a single mobile application, be it for paying a friend, merchant, donating to multiple sites, online shopping, entertainment and nearly every basic tasks like buying day to day vegetables.?

Some Figures & Stats :-

- UPI reported 6.28 bn transactions in July 2022 that amounted to Rs 10.62 trillion, which is the highest-ever transaction volume since 2016

- With nearly 6 billion transactions a month, valued over Rs 10 lakh crore and touching 260 million users, India's UPI has become the best performing real-time ecosystem in the world

- Merchants in 10 countries now accept UPI payments.

- UPI transactions more than doubled on a year-on-year basis.

What Led to this unreal Success of UPI? Or rather say benefits of UPI.

1) Convenience/Ease of Doing Transactions?

- The first and foremost and the most important reason that Led UPI to formidable success is that the Convenience it provides. People no longer need to remember the bank account numbers, name of account holders, debit/credit numbers and cvv, IFSC codes for entering into transactions. All of this mess isn't present in UPI as once entered, it can be saved. Likewise, the ease of using such apps has helped the users increase the usage of UPI.

2) Instant Payments

- The Payments through banks results in long waiting queues and forms filing trouble. One needs to remember all the details of the banks. But through UPI, this major drawback has been annihilated. Now, the payments are quicker and takes no time. Even the merchant payments now are done promptly & swiftly because the spread of UPI has been prodigious. Hence, one of the most important reasons that UPI has grown massively is because of it's hassle-free transactions experience.

3) Digital World

- While India has been progressing towards the digital era, More and more people have started using smartphones in this digital world. With the increase in users of smartphones, people now have a greater access to UPI which makes them adapt this great system with other advantages. Hence, Accessibility has increased and so Is the use of UPI.

4) Cheap & Reliable?

- The transaction cost in the UPI is less when compared to the banks, RTGS and NEFT. As Indians always look over something cheaper and better, there's no doubt that UPI was always going to be The Choice of Indians. Moreover, the UPI system is secure and Reliable. Security features such as security pin before doing any transaction helps us to save ourselves from frauds. Hence, UPI has built trust over the period of time because of its security features being secure and reliable.

5) All In One?

- Through UPI each and every transactions are a one destination stop. From paying to known ones such as family members, friends or even the unknown ones such as paying for donations, Paying for rent, electricity, mobile, TV recharges, Booking cylinders or buying tickets for Travel through bus, train, flights, paying for buying tickets of entertainment shows, cricket matches, Financial services like getting loans and credits, paying for insurances, Doing Investments through SIPs, Paying Challans and Fastags in tolls, everything can be done through UPI which is a major boost and an prominent fact that led to such adaption of UPI.

6) Other Benefits of UPI

- You don't need to enter or feed your card, PIN details each time, these steps are eliminated in UPI.

- Send or receive money 24/7, even on public/bank holidays.

- Easy scanning Qrs and Sharing Contact Numbers instead of traditional methods like sharing Bank account Number, IFSC Codes and other details.

- No problems of Changes & getting toffee -:)

Some Problems with UPI

- Transaction limits are the biggest barrier for UPI.

- Online Frauds are increasing day by day & People are tricked.

- Banks Server down leads to problems for the users.

- Internet connectivity can cause a problem.

- Sometimes, there can be delays in payments, it takes up to 48 hours for the money to get back to your?bank account.

- Attracts us to spend more through various offers and discounts.?

Conclusion :-

Well, as the numbers speak for themselves, UPI has been the game changer in Indian Society. Access to real-time secure online payments has become an imperative notion in the digital society today. Leading from the front, India has been making giant strides towards promoting digital payments transactions with its Unified Payment Services.