What bodes well for the future of UPI?
Crisil’s research shows that digital payments in India seem to grow at a CAGR of 12.7% and may jump to Rs. 4,055 lakh crore in FY24 with a five-year CAGR of 20%. Also, prediction shows that UPI payments will dominate the payments space with 59% payment transactions.
Since its inception in 2016, UPI has been making strides in the payments sector in India. With around 1.31 billion transactions in December 2019, it has become one of the sought after payments platform in India.
At this juncture, it is imperative to learn the future predictions for the UPI payments system. In the course of this blog, let us learn more about the future of the UPI payments system.
1. International launch of UPI Payments in Singapore
The pilot demo of BHIM UPI took place in Singapore in November 2019. It demonstrated a perfect collaboration between the National Payments Corporation of India (NPCI) and Network for Electronic Transfers (NETS) of Singapore. The project is expected to go live by February 2020. Interestingly, this is the first step in internationalizing UPI payments.
The QR code would allow anyone with the BHIM App to make online payments across the payment terminals in Singapore. Further, the international launch comes to the aid of businesses to seamlessly import and export across the borders.
2. UPI Payments-Artificial intelligence link
Artificial intelligence will determine the success of UPI based payments in the future. For example, AI can seamlessly incorporate the auto-debit payment feature. This removes the hassle of remembering the money transfer leading to efficient and effective payment transfer. Also, the chances of human errors get reduced to a minimum.
Further, the use of Artificial Intelligence in the digital payments domain eases the compliance requirements by automating the process. Automation goes a long way easing the process and standards associated with the UPI.
3. Increasing merchant transactions on UPI
UPI has become a major mode of payments not just in the Tier I cities, but also in the Tier II and Tier III cities. For example, roadside tea vendors provide a UPI payment platform in addition to the cash payment system. Small Kirana shops have started implementing UPI based payments on an extensive scale. Be it hotel bill payments or college admissions, it is here to increase the merchant transactions.
4. UPI-Credit card linkage
At present, UPI supports payment through wallets, debit cards, and net banking. Credit card functionality is not made universal. Apps like Phonepe has enabled it on their platform. Going ahead, the credit card feature will be made functional on the different payment applications.
On the whole, the future of UPI looks bright and prospective. We may not be in for a surprise if UPI turns out to be the first preference for all the transactions done in India.
References:
- Road map for the new decade: Creating a secure future for digital payments
- BHIM UPI goes international, launches at Singapore FinTech Festival
- How Can Artificial Intelligence Change Digital Payments in India
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YOU ARE READING THE ARTICLE COURTESY: SabPaisa (SRS Live Technologies) – headquartered in New Delhi with eight regional offices including Mumbai, Bangalore & Kolkata – is a rapidly growing Fintech company having developed one of India’s most advanced AI-driven recurring payments platform bolstered by another of SabPaisa’s unique products: world’s first hybrid payment platform which has all the payment modes in a single checkout page, online and offline, from UPI to Cards to e-NEFT to e-Cash. Businesses that take SabPaisa’s payment gateway get real-time reconciliation and consolidated reports for all payments, recurring or one-time, online or offline, in a single dashboard, whether the payer is an 18-year-old in Kashmir paying through UPI or a 70 year paying through Cash in Kanyakumari. SabPaisa’s payments and collection application suite have already processed more than INR 12 Billion to date. Learn more about SabPaisa here:https://sabpaisa.in
