UPI Giving E-Payments A Run For Their Money
Unified Payment Interface (UPI) is a simple, real-time, and secure mode of transferring money. It overtook mobile wallets in term of volume of transaction and value. UPI transactions have increased over four times in last one year, with transaction worth 1.42 trillion made in April.
The reason behind the increasing popularity of UPI
The main reason behind the popularity of UPI is its simple, safe, cost-effective, and mobile-based payment system. Companies like Paytm, PhonePe, and Google Pay, along with 144 banks, are also offering payments via UPI. In March UPI transactions were of worth Rs 1.3 trillion as compared to mobile wallet transactions worth Rs 15,990 crore. As the awareness and comfort of users increasing, they are moving towards UPI to carry out their transactions.
Benefits of UPI
A user can transfer money across multiple bank accounts using UPI, regardless of a bank’s working hours. It doesn’t reveal the details of the beneficiary’s bank account. To use UPI, one needs a reliable internet connection, a, and a UPI ID. You can transfer funds up to Rs2 lakh in a day. It has been adopted by e-commerce sites, Cab companies, and food ordering apps.
Growth Of UPI
UPI transactions had reached to 799.54 million transactions in March 2019 from 93,000 transactions when it was launched in August 2016.
How is banking regulator giving a push to UPI and e Payments?
The vision of the banking regulator for payments in India for 2019-21 will be to set up safe, secure, accessible, and affordable payment systems. By providing more payments options to people who have been untouched by such payment systems, the economy will move to a less-cash economy. The banking regulator expects digital transactions to increase from 20.69 billion in December 2018 to 87.07 billion in December 2021.