First and foremost, a warm welcome to everyone. Today we gonna discuss the UPI system which is a real-time payment system how UPI has completely revolutionized the whole of India's digital economy. Just imagine your life before the UPI is introduced either you have to wait to transfer the money through NEFT or immediate transfer through IMPS and none of the small sellers or retailers accept these payment methods. But now things got changed you can simply transfer money to anyone in India with just one click. So without wasting any time let's just jump into it.
From cab drivers to valet parking, mall entrance to toll payments, power bills to LPG reservations, everyone now takes UPI. Even our favorite snack shops accept UPI payments, which may sound incredible.
However, not everyone is happy with it. On a completely separate issue, many individuals believe that the development and growth of UPI have harmed sweets businesses.😲 Do you recall getting sweets instead of money as a child?
On LinkedIn, Abhishek Patil, the founder of GrowthX, compared sweets and UPI as payment methods. According to Abhishek, almost all major confectionery companies, including Mondelez International, Mars, Nestle, Perfetti Van Melle, Parle Agro Pvt Ltd, and ITC Limited, claimed astonishing growth and future prospects in the early 2010s. However, since UPI's arrival, the bulk of these businesses have experienced a significant decrease in toffee sales.
What is UPI?
The Unified Payments Interface (UPI) is a system that integrates several bank accounts into a single mobile application (of any participating bank), combining different banking services, smooth fund routing, and merchant payments under one umbrella. It also handles "Peer to Peer" collection requests, which may be scheduled and paid according to need and convenience.
In light of the foregoing, NPCI conducted a trial launch with 21 member banks. Dr. Raghuram G Rajan, Governor of the Reserve Bank of India, launched the pilot program in Mumbai on April 11, 2016. Banks began uploading their UPI-enabled apps to the Google Play store on August 25, 2016.
How UPI is unique among other payment interfaces?
- Immediate money transfer by mobile device 24 hours a day, 7 days a week.
- A single smartphone app for accessing several bank accounts.
- Single Click 2 Factor Authentication - Complies with regulatory criteria while providing a powerful feature of smooth single click payment.
- The client's virtual address for Pull and Push offers additional protection because the consumer is not required to submit data such as card number, account number, IFSC, and so on.
- The QR Code is the best solution to the inconvenience of Cash on Delivery, going to an ATM, or rendering an exact amount.
- Utility bill payments, in-person payments, and payments based on QR codes
- (Scan and Pay) as simple as that.
- Donations, collections, and disbursements are all scalable.
- Directly filing a complaint with the mobile app.
How has UPI changed India's digital economy?
Over the course of six years, UPI has effectively transformed India's digital payments ecosystem. UPI has been used for real-time payments by consumers all across the world, and the Pandemic has assisted its expansion. Globally, India has three times the real-time transaction volume of the nearest competitor, China.
UPI has gone a long way toward making digital payments a habit and firmly establishing India on the path to a cashless economy. In the month of Dec 2022 alone, 382 banks were operational on the UPI interface, with 7.82 billion financial transactions totaling over Rs. 12.82 lakh crores.
UPI presently accounts for far over 40% of all digital transactions in India. It has boosted small enterprises and street sellers by enabling rapid and safe bank-to-bank transfers, even for modest sums. It also makes swift money transfers possible for migratory employees. The technology is simple to use since it needs little physical effort, allowing money to be sent simply by scanning a QR code. UPI was also a lifesaver during the Covid-19 outbreak, with its use spreading swiftly because of its capacity to facilitate simple, contactless transactions.
Global acceptance and use of UPI would strengthen an overdue emergence, lowering the cost of cross-border remittances. Singapore, Bhutan, and Nepal have all endorsed UPI. NPCI said on June 17, 2022, that UPI and Rupay cards will soon be accepted in France; NPCI is also pursuing more Asian countries such as Malaysia, Vietnam, and Thailand. The BHIM UPI app became available in the UAE in April 2022 through Mashreq Bank's NeoPay terminals.
According to Cebr Economic Research research, fast payments in India would result in an extra cost reduction of $12.6 billion by 2021. The same contributed to the release of $16.4 billion in Indian economic production, or 0.56% of India's GDP.
.UPI payments are expected to improve India's GDP by an extra $45.6 billion, or 1.12%, by 2026. With a push to integrate credit cards with UPI and other initiatives, one thing is clear: the future of money is digital. The mainstream adoption of UPI in India is a global case study: India's status as a global leader in digital payment is well-established and growing.
CONCLUSION
There is little doubt that India's digital payment ecosystem has been revolutionized. In addition to the government's efforts, the people of India have demonstrated a strong willingness to embrace new technology. So that's the end of today's article I will see you all in the next post till then stay safe and motivated and also let me know in the comments what are your thoughts on the UPI revolutionizing India digital's economy.😎
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