When was the last time you checked your wallet before going out to see whether it had some cash in it? It must be a long, long time ago. Gone are the days when carrying cash was a priority, and nowadays, a smartphone is more than enough to complete certain financial tasks.
This is where UPI payment steps in. Since the launch of this technology in 2016, cash transactions have witnessed a significant dip in our country. Moreover, after the Covid-19 outbreak, it led to a better reach and adoption.
What is UPI?
It is a real-time payment platform produced by the NPCI (National Payments Corporation of India) that supports online money transfers between bank accounts via a single application only. So, it has solved the hassle of using various applications for different payments and merged various banking services and features under one umbrella only.
To send and receive money, a UPI ID and a PIN is sufficient; most importantly, using the right application plays a crucial role here.
With just a few taps on your smartphone, you can recharge your mobile, pay your water/electricity bills, and even broadband bill via UPI payments.
What are the advantages of UPI payments?
It enables instant funds transfer between bank accounts without the need for cheques or cash. One can access it via the right mobile application, making it relatively easy and accessible for anyone with a smartphone.
When you opt for UPI payments, there is no need to worry as it is safe and secure. This is because it uses two-factor authentication for all transactions, which ensures that only authorized users can access the funds. Moreover, these transactions are protected with an extra layer of security, i.e. encryption.
A UPI transaction is much cheaper than other forms of digital payments. This makes it more accessible for small businesses and individuals with low incomes.
This means one can easily spend over and above the bank balance on a UPI application by opting for PayLater. Further, the dues can be cleared conveniently within a stipulated period and at a reasonable rate of interest.
What is the future of UPI payments in India?
Undoubtedly, the future of such a payment method in India is quite promising. We all know that UPI has already become a popular choice for digital payments in India, with a high number of transactions every day.
Moreover, in recent developments, now Non-resident Indians (NRIs) will soon be able to make a UPI payment without even having an Indian mobile number, that is, using their international number.
In a recent circular, the National Payments Corporation of India (NPCI) said, “We have been receiving requirements from the ecosystem with regards to the Non-resident (NR) accounts and other permissible accounts having international numbers to be allowed to transact in UPI. And there has been customer demand in the ecosystem to enable UPI for their NR accounts to have international numbers and experience the seamless and instant journey of UPI.”
Further, as more and more people become aware of its benefits, the UPI is expected to grow in popularity in India. As the transactions continue to grow, there will be a need to strengthen security measures to protect against fraud and data breaches.