Mr. Sethurathnam Ravi throws insights into the revolution created by the UPI and the shift of India into the technological realm especially during the pandemic times. Unified Payment Interface is a digital innovation with an instant payment option developed indigenously by the National Payments Corporation of India (NPCI) and launched in 2016 in India.
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| Sethurathnam Ravi |
According to S Ravi BSE, the popularity of UPI is evident, as it is accepted by tiny roadside shops to large brands as well as by small retailers to wholesale merchants. “The numbers speak for themselves. In the last 4 years from October 2018 to September 2022, the number of banks live on UPI has increased from 128 to 358. And the volume of the transaction has risen from 482 million to 6,781 million and transactions from Rs 74,978 crore to Rs 11,16,438 crore. This is significant proof of the success and growth of the UPI story”, Mr. Ravi adds.
The main reason for this penetration as per the analysis of Mr. Sethurathnam Ravi is that UPI accepts transactions as small as a rupee. The incentive for merchants is on account of the absence of MDR to be paid to the banks vis-à-vis card transactions and end-to-end transact ability on smartphones, wherein only a single device is required to complete a transaction, thereby making the process simplistic.
The ecosystem in which UPI thrives is also key to its success, says the expert. This includes the presence of high-speed internet in many parts of the country, technologies that power a smartphone, cloud computing and modern software engineering technologies that fulfil a transaction in a few seconds. The security of a UPI transaction is tied to the user’s authentication with a mobile phone — there is a mobile personal identification number (MPIN) for the UPI application and there is one more layer of security when the bank’s online transaction PIN is to be keyed in as part of every UPI transaction. If you block a mobile number due to theft, for example, then UPI transactions on that mobile number will also be halted.
In the words of S Ravi BSE, the NPCI has come up with multiple new innovations over the past few years: recurring payments for monthly bills, international payments, linking UPI to credit cards, 123pay … and many more features. The dynamic QR code is a great boost to security and trust because there is no risk of someone tampering with a static QR code. The merchant generates a QR code specific to that transaction amount and the customer pays through UPI by scanning the QR code”.
NPCI has partnered with entities in the USA, Japan, Singapore and Dubai to broaden base transactions abroad. Sethurathnam Ravi details. UPI is unique as it:
· It allows real-time transfer of money any time/ any day of the month and year by using a single mobile application for accessing different bank accounts.
· It is supported by the security feature of single-click 2-factor Authentication — aligned with the regulatory guidelines as well as virtual address allowing incremental security as the customer is not required to share account details.
· Payment to merchants with a single account or through Apps and thereby not relying on cash arrangement/ ATM
· It has the facility to raise grievances from the mobile App Directly
The UPI is a phenomenal Indian technological success story. The interface in a short period has facilitated Indians to move from a cash-based economy to a digital economy. Sethurathnam Ravi concludes with the exciting thought that the pandemic has taught us that the future is digital and the contribution of UPI to the cause is phenomenal.
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