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Meet the next generation payments platform: UPI 2.0 is the name

Dive into the next level of UPI payments with these amazing features

The end of FY 2019 was a landmark year for UPI transactions with a whopping 10 billion transactions. On the other hand, UPI crossed the 1 billion mark in a time span of three years. Since its inception in 2016, UPI grew by leaps and bounds with UPI 2.0 being the latest update on the instant payment transfer system.

The UPI based transaction comes with the benefit of peer to peer transactions from a single platform. Irrespective of the banks, money transfer occurs directly from one account to the other with the help of a virtual payment address (VPA).


UPI Payment


UPI 2.0 is an upgraded version of Unified Payments Interface (UPI). It endorses enhanced features and improved security structure. Also, it puts forward an easy authentication process. The four core security features of UPI 2.0 centers around linking overdraft account on UPI, signed intent and QR, one-time mandate and invoice in the inbox.

In this blog, we shall learn the basic concepts surrounding UPI 2.0.


UPI 2.0 Feature 1: Linkage of overdraft account on UPI

On UPI 1.0, there is a linkage option to both current and savings accounts of the users. But, with UPI 2.0, an overdraft account of the user or business is also linkable. Overdraft account linkage brings in a flexible money transfer for businesses. Businesses can withdraw money or make transactions even when there is a money deficit in their bank account. It ensures that businesses are not cash-starved during lean reasons.


UPI 2.0 Feature 2: Signed Intent and QR

With a quick response code (QR) and signed intent option, users can check the authenticity of the merchants. Users have the option to check if the merchants are UPI verified or not. In case the merchant is not UPI verified, users get information via notifications. This security feature ensures that QR code tampering frauds are reduced. Hence, signed intent and QR features bring in secure and tamper-proof transactions.


UPI 2.0 Feature 3: One-time mandate

The significant feature allows you to pre-authorize a payment transfer. For example, if you want your debit account to be automatically debited with a certain amount at a specified day of the month, you can set the transaction command on UPI 2.0. This feature eases the problem of a user forgetting to make the transfer every month.


UPI 2.0 Feature 4: Invoice in the inbox

This is a noteworthy and secure feature addition to the UPI. Before making your payment to the merchant, it is possible to view the generated invoice. This brings in security by verifying the credentials of the transacting merchant. In other words, this feature safeguards you from fraudulent transactions.

On the whole, UPI 2.0 brings in an innovative, safe and secure ecosystem for online payments. At present, major banks like SBI, ICICI, Kotak Mahindra Bank, Axis Bank, Federal Bank, etc have operationalized UPI 2.0 on its platform. Other banks are following suit. Nevertheless, UPI features keep evolving to enhance the peer to peer payment transfer ecosystem.






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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:

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