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Unified Payment Interface - A Single Digital Wallet for Your Spends


Make instant and secure payments from any of your linked accounts with VPA process using Axis Upi App. No need to remember your bank account number & IFSC. – PowerPoint PPT presentation

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Title: Unified Payment Interface - A Single Digital Wallet for Your Spends

  • Unified Payment Interface - A Single Digital
    Wallet for Your Spends

  • India is inching towards a cashless economy
    through innovative payment solutions introduced
    by the RBI and the National Payment Corporation
    of India (NPCI). Their latest offering is the
    Unified Payment Interface (UPI), using which your
    smartphones get transformed into virtual debit
    cards for money transfer.
  • The UPI Demystified
  • The UPI interface allows customers to make fund
    transfers between two people, person-to-business
    and business-to-person.
  • In the current mobile payment system, only the
    send mode is available. The advantage of the
    UPI is that it enables the person receiving the
    funds to initiate a transaction. So, in addition
    to the ability to send funds to a recipient, the
    UPI empowers the recipient to initiate a cash
    collection from a source.

  • Previously users need to to provide their account
    number, branch IFSC code, Aadhaar number, mobile
    number. Although the platform also use the
    Aadhaar number, mobile number and account number
    of an individual, these details are not divulged
    during the payment process.
  • The user could initiate transfers using virtual
    addresses (resembling email ids) that are aliases
    to bank accounts. Alternatively, fund transfer is
    also possible using Aadhaar number as an
    identifier. This is a very useful functionality
    for the rural demographic.
  • An exciting feature of the interface is the pay
    by date, which allows payment requests to be put
    on hold and paid at a later date. It allows
    recurring payments, like salaries, school fees,
    subscriptions, etc. with a one-time secure

  • It also allows PSPs to pay from an account using
    multiple virtual addresses, segregated by
    passwords, PINs or biometrics.
  • Interoperability is the real game changer here.
    With the ambitious plans chalked out for the UPI
    system, the need to have different wallets for
    different e-commerce sites could be completely
  • The Upi App platform mandates a limit of Rs. 1
    lakh per transaction.
  • UPI runs on IMPS hence the service is available
    real-time and 24x7.
  • NCPI has stated that each transaction through UPI
    will be charged Rs. 0.50, and it will appear as
    an IMPS transaction on the bank statement.

  • UPI is an extremely secure payment method, and
    transactions happen in an encrypted format.
  • Currently, the Upi App is not available on App
    Stores, but it will be launched shortly.
  • Impact on Mobile Wallets
  • Popular mobile wallets like MobiKwik has millions
    of users who are loyal to these platforms owing
    to the convenience, security and speed of
    transactions. With the UPI in place, these
    companies expect to unlock new channels for
    growth and enlarge their reach.
  • The RBI has only authorised banks to be Payment
    Service Providers for UPI, keeping mobile wallets
    away from the platform. These non-bank members
    are currently awaiting directions from the RBI
    and NCPI to get access to the system. Unless
    wallet companies signify their relevance through
    innovative methods, they will find it difficult
    to survive the competition.

  • Impact on Payment Gateways
  • Payment gateways aggregate various payment
    methods like credit cards, netbanking and mobile
    wallets. These also offer detailed information on
    received payments, provide transaction
    management insights and enable customisation at
    every level. This is beyond the current
    capabilities of the UPI. Moreover, the protection
    that payment gateways offer against disputes is
    unavailable in the UPI today, but will be
    incorporated as the platform matures.
  • In conclusion, the success of the UPI largely
    depends on smartphone penetration in the country.
    But it currently looks like a step in the right
    direction towards faster, smoother and easier
  • Source http//bit.ly/2lXm1BW

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