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Banking digital payments fintech payment gateway

5 Ways How UPI is Changing the Payments Ecosystem in India

UPI has touched almost all sectors of India

Last week, I was at a new tea shop near my house. The tea cost me a meager ten rupees. But, upon checking my wallet, I was shocked to find it empty. The shop owner read my situation and told me, “Madam you can pay via GooglePay. Look at the code scanner, just scan and pay.” Then came the live-action of the UPI payments ecosystem in India.

I was in for another shock when my Google pay account was temporarily down. I saw the customer queue increasing. Immediately, I downloaded Phonepay into my mobile. Phonepay is a prominent app which supports UPI transaction. The payment took place within no time. This is the outreach of the UPI across the payments ecosystem in India.

UPI Payments Ecosystem in India

Why has UPI captured the payments space within four years of its inception? What makes it stand out from wallets or digital cards? UPI offers an immediate payment service with the help of either a VPA, mobile number or Aadhaar number. It makes the transaction channel secure and hassle-free.

UPI has made its mark felt in the different sectors of the Indian economy like Education, Health, Social Sector Schemes, etc. In the course of this blog, let us explore the outreach of the UPI payments ecosystem in India.

Payments Ecosystem 1: Government Schemes

Government of India’s flagship program Digital India aims to make India a digitally empowered society. Launched in the year 2015, Digital India relies on advanced technological infrastructure to serve the needs of the customer. Of this, digital payment forms an important cum core part.

In tune with its Digital India initiative, the government launched the BHIM UPI (Bharat Interface for Money). It makes use of the UPI platform for immediate bank to bank money transfer. Transfer validation happens either using a VPA (Virtual Payment Address) or a mobile number.

Key government schemes like Jan Dhan Yojana and Direct Benefits Transfer (DBT) have started using the UPI payments interface, transitioning from the RTGS or the NEFT based platform. It brings in ease and security to the payment transactions since the user does not have to remember complex details like the account number, bank name, etc.

Payments Ecosystem 2: Education

The education sector is witnessing rapid stride in the use of the UPI Platform. Payment platforms like Razorpay, Instamojo, SabPaisa, etc. have enabled it on their platform. For example, SabPaisa is the world’s first hybrid payment platform. It offers numerous payment modes ranging from UPI to Cards to Netbanking to Cash to NEFT. UPI is one of the focal product that helps in seamless payment transmission while paying college admission fees or paying the late fine.

Payments Ecosystem 3: Health

Health schemes in India are transitioning to the use of digital payments like UPI. Further, to promote the use of UPI, the government provides a number of incentives.

The major health schemes in India are Universal Health Insurance Scheme (UHIS), Ayushman Bharat, Aam Aadmi Bima Yojana (AABY), Rashtriya Swasthiya Bima Yojana (RSBY), etc. As part of the schemes, patients can pay through various digital modes like UPI, BHIM, credit/debit cards and wallets. The Ministry of Health and Family has issued advisories to all government and private hospitals to facilitate digital payments for ease of transactions.

Payments Ecosystem 4: Business

The business sector is witnessing new opportunities with the rapid advancements in UPI. For example, Fintech companies in India are being flooded with requests at an international level for UPI customization. Further, NPCI has relaxed the rules for small companies by increasing their monthly limit of Rs. 50,000. Also, the merchant onboarded under this category does not have to pay anything to the acquirer.

Payments Ecosystem 5: Miscellaneous

UPI has pervaded every aspect of our life. In addition to Tier I cities, Tier II and Tier III have seen an increased use of UPI. For example, if a user in a Tier III city wants to do a DTH recharge, he has to simply open the UPI app on his mobile and scan the code on the TV screen to kickstart the payment process. Similarly, UPI is used to buy on-demand movies in a seamless manner with the click of a button.

On the whole, UPI is the ripe technology of the future which continues to make notable advancements in a rapid manner. From education to the business sector, UPI has touched upon all the major sectors of the Indian Economy. In commensuration with Artificial Intelligence and Machine Learning, UPI holds significant promise for the future.

References:

For more blogs, visit SabPaisa Blog

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

Categories
Banking digital payments fintech mobile wallets

The UPI vs Wallets war: Who is the winner?

Choose the best payments platform for your business

Recent research suggests that between 2021-22 & 2024-25, UPI will dominate payments space with 59% payment transactions. Interestingly, UPI clocked a whopping 1.31 billion transactions in December 2019. Further, UPI has been dethroning popular payments medium like Wallets, Digital Cards, etc. In other words, UPI vs Wallets debate is a reality.

From the non-requirement of an intermediary to safe and secure transactions, UPI differs from wallets on a number of aspects.

UPI vs Wallets

In the course of this blog, let us learn the crucial differences between UPI and Wallets.

UPI vs Wallets Difference 1: Intermediary involvement/ Money Source

In the case of wallets, money is transferred from the sender’s wallet to the receiver’s wallet. The user has to load money from their respective bank account to the wallet before making a payment. Hence, the wallet acts as the intermediary in the money transfer between individuals. It involves a complex transaction process.

On the other hand, UPI involves direct bank to bank money transfer. There is no involvement of an intermediary, thereby reducing the complex wallet loading step. Hence, you can make the funds transfer with a single step.

UPI vs Wallets Difference 2: Account Identity

In the case of the wallet, the mobile number is the account identification entity. Before you make a transaction, the identity of the sender and the receiver is verified by the wallet application.

Contrarily, in the case of UPI, the VPA (Virtual Payment Address) acts as the payment identifier. It takes the form of:

ex: ******@ (application customised name) -> [email protected]

UPI vs Wallets Difference 3: Interoperability

In the case of wallets, the sender and the receiver have to be registered with the same wallet app to make a transaction. For example, if the sender uses a Paytm wallet, the receiver should have the Paytm wallet to receive the money.

In comparison, the UPI transaction takes place between any two bank accounts, irrespective of the UPI application used to make the transaction. For example, using Google Pay, a sender can transfer money to a receiver who has Phonepe installed on his phone ( using his Phonepe VPA ).

UPI vs Wallets Difference 4: Transaction Limit

Wallets come with a low transaction limit. For example, for non-KYC customers, the transaction limit is 10k/month. And for KYC customers, the transaction limit is 20k/month.

On the other hand, for UPI transactions, there is a limit of 1 lakh transactions/day. However, the upper limit varies from bank to bank, i.e, from 10k to 1 lakh.

UPI vs Wallets Difference 5: Safety

UPI provides a platform for a safe and secure transaction. In other words, every UPI transaction happens with a 4 or 6 digit M-PIN (mobile pin). The MPIN is set up during the initial registration on the UPI App.

Comparatively, there is a chance of security compromise in the case of wallets due to the indirect involvement of the bank. It is basically a wallet to wallet money transfer.

Summary:

Top 5 differences between UPI and Wallets

  1. UPI comes with the direct bank to bank transfer while wallet transactions involve payments from one wallet to another with the indirect involvement of the bank.
  2. The wallet makes use of the mobile number for account identity while UPI makes use of the VPA.
  3. The UPI transfer happens between 2 bank accounts irrespective of the type of UPI app use whereas wallet transfer requires the installation of the same wallet app for money transfer.
  4. UPI transaction limit is 1 lakh per transaction while the wallet transaction is limited to 10k/month for non-KYC customers.
  5. UPI transaction requires an MPIN while wallet transaction may or may not involve an OTP.

Further reading:

For more blogs, visit SabPaisa Blog

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

 

 

 

Categories
digital payments fintech payment gateway

If you love UPI, you must love these 4 institutions more

Know these institutions to learn more about UPI

Introduced in the year 2016, UPI has positively altered the payments ecosystem in the country by bringing in a wave of digitization. UPI simplifies transactions by making use of the VPA (virtual payment address). It avoids the complex credential entry while making card transactions. Secondly, with the launch of UPI 2.0, features like QR & Signed Intent and Invoice in the inbox has scaled up the UPI security. Behind the success of UPI lies the efforts of numerous UPI institutions like NPCI, RBI (Central Bank), other banks, etc who manage the seamless functioning of the UPI system.

UPI institution

In the course of the blog, let us learn more about the UPI institutions that ensure a safe and secure transfer of your money.

UPI Institution 1: NPCI (National Payments Corporation of India)

National Payments Corporation of India is an organization dealing with retail payments and settlements in India. It is an initiative of the RBI and the Indian Banks’ Association, set up in 2008. The  State Bank of India, Punjab National Bank, Canara Bank, Bank of Baroda, Union Bank of India, Bank of India, ICICI Bank, HDFC Bank, and Citibank are the ten core promoter banks of NPCI.

The core payment products offered by NPCI are:

  • Rupay
  • Bhim
  • UPI
  • NACH
  • Immediate Payment Service
  • AEPS
  • Bharat Bill Payment System
  • BharatQR

UPI is one of the flagship product developed by NPCI. Introduced in 2016, UPI is a safe and secure medium for payment transfers. With UPI 2.0, new security features like Invoice in the inbox and Signed Intent & QR has enhanced the outreach of UPI.

UPI Institution 2: RBI

RBI is the apex bank of India supervising all the public, private, rural and cooperative banks in India. In other words, RBI sets the monetary policy in India in commensuration with the fiscal policy. 

Established under the RBI Act, 1964, RBI has its headquarters at Mumbai. The regional centers spread across the four zones are North in New Delhi, West in Mumbai, South in Chennai and East in Kolkata.

The Central Board of Directors is the major decision making of the RBI. The Board is headed by a Governor and not more than four Deputy Governors.

UPI Institution 3: UIDAI

The Unique Identification Authority of India is a statutory body responsible for the implementation of the Aadhaar based payments system in the country. It was established under the provisions of the Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Act, 2016.

UIDAI issues the Adhaar number to all the residents of the country. Aadhaar number is a 12 digit unique identification number for the Indian residents.

Aadhaar is a multi-purpose card used as an ID card to avail voter’s Id, mobile connection, driving license, etc.

UPI Institution 4: UPI App Service Provider

There are many service providers who have enabled UPI on their app. For example, some of the famous service providers are GooglePay, Phonepe, Paytm, etc. Each service provider offers unique and customized UI features to use UPI services.

On the whole, the successful UPI transaction depends on the successful collaboration and interoperability between all the above-mentioned organizations. 

References:

For more blogs, visit SabPaisa Blog

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

Categories
Banking digital payments fintech

How to make UPI fund transfer? These 5 awesome channels should not be missed

Best channels for UPI transaction

Are you facing payment issues while making cash payments? But, are you struggling to choose between the best digital alternative? Don’t worry, UPI channels are here to your rescue. Introduced in the year 2016, UPI has positively altered the payments ecosystem in the country by bringing in a wave of digitization.

UPI’s popularity stems from many factors. Firstly, UPI simplifies transactions by making use of the VPA (virtual payment address). It avoids the complex credential entry while making card transactions. Secondly, with the launch of UPI 2.0, features like QR & Signed Intent and Invoice in the inbox has scaled up the UPI security.

UPI Channels

 

In the course of the blog, let us learn the different channels for making a UPI transaction.

UPI Channel 1: Through VPA (Virtual Payment Address)

Money transfer through the VPA is the elementary method of transferring money through the UPI platform. VPA stands for Virtual Payment Address. It is a unique identifier that is required to map the payee details before initiating a financial transaction. A single identifier reduces the tedious task of entering bank details like bank account number, CVV, etc.

VPA format: User-defined [email protected]/service provider

Ex: [email protected] or [email protected]

UPI Channel 2: Account number + IFSC

Money transfer through the Account number + IFSC  is the secondary method of transferring money through the UPI platform. In case you are not aware of the payee’s VPA, you can still make the payment by making use of the account number and the IFSC combination.

The account number is the 12 digit number of the payee’s bank. IFSC code is the 11 digit alphanumeric number provided by the RBI for accurate identification of banks in India.

In your UPI app, search for the Bank Transfer option. A window to enter the Account number and IFSC opens up. After the verification of the payee, you can start making the money transfer.

UPI Channel 3: Mobile Number + MMID

Money transfer through mobile number verification is the third method to do UPI money transfers. It comes with the advantage of filtering out fraudulent numbers in the first go. You can be assured that your money reaches the right destination.

To transfer money through mobile number, open the Phone number tab on any UPI app. Enter the payee’s mobile number. You get a ‘payee verified’ or ‘payee not verified’ message to proceed with your transaction.

UPI Channel 4: Aadhaar Number

If you are not able to make transactions using the above 3 methods, you can use the Aadhaar method to make a UPI transaction. But, this feature is not available on all the UPI apps.

On the Aadhaar number enabled UPI app, go to the send money option. From there, select the Send Money/ Payee address type option. Select Aadhaar number from the dropdown. Subsequently, key in the Aadhaar number of the payee before making the transactions.

UPI Channel 5: Collect/ Pull Money basis VPA

Using UPI, you can send as well as request money from your acquaintances. This feature keeps a track of the money owed to you by your peers.

To access this UPI channel, go to the Collect Money option in your UPI App. Enter the VPA address of the payee along with the collection amount. Also, there is an option to enter the time when you want to collect the amount.

 

 

References:

 

For more blogs, visit https://blog.sabpaisa.in

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

 

 

Categories
Banking digital payments

These 5 UPI security features will keep you asking for more

Learn these tips to do faster and secure transactions

Since its inception in 2016, UPI (Unified Payments Interface) continues to alter the digital payments ecosystem in India. Post the demonetization of Nov 2016, there has been an increasing demand for digital modes of transactions. UPI has commensurately filled up this requirement by offering faster and secure transactions. The money transfer or receive happens faster with the help of the sole information of VPA (virtual payment address). Further, UPI security features have garnered maximum attention since the beginning.

Statistics show that UPI transactions continue to increase by leaps and bounds. This showcases the increasing acceptability of UPI transactions for personal as well as commercial transactions. The transactions spiked to ₹2.02 trillion in December as compared to ₹1.89 trillion in November. Also, UPI touched 10% of India’s GDP since its inception in August 2016.

UPI Security features

There are numerous reasons for the popularity of UPI. One of the significant reasons could be attributed to the robust security features of UPI. It includes two-factor authentication, mobile number verification while registering, etc. Further, UPI 2.0 has brought in exciting security features like signed intent and QR and invoice in the inbox.

In the course of the blog, l will walk you through the security features of UPI in detail.

UPI Security feature 1: Binding with mobile number

This is a significant feature of UPI that brings in the first layer of security. UPI verification of the user happens during the initial login and registration. The UPI app binds with your mobile number to verify your identity. In case, you change the phone or the number, you need to verify your identity again. This option ensures that your credentials stay safe in case of mobile threat or identity threat.

UPI Security feature 2: Two-factor authentication

The second security feature comes into effect during the transaction process. While registering on UPI, users are given an option to set an MPIN (Mobile PIN). It is a 4 or 6 digit number set up while registering on the UPI app. You can generate it by clicking on create/generate MPIN tab and entering the debit card details (last six digits and card expiry details). In the course of transactions, this MPIN is used to authenticate a transaction. You can also change the MPIN if you forget it, using the same create/generate MPIN tab.  

UPI Security feature 3: 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 remain low. Hence, signed intent and QR features bring in secure and tamper-proof transactions.

UPI Security feature 4: Invoice in the inbox

This is a noteworthy and secure feature addition to the UPI. Before initiating 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.

With the launch of UPI 2.0, the security features are at a top-level. Based on the user requirements, the security features keep evolving and makes UPI one of the most sought after UPI feature.

References:

For more blogs, visit https://blog.sabpaisa.in

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

Categories
Banking digital payments

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 2.0

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.

Reference:

https://www.ccavenue.com/article/NPCI-enhances-Fund-Transfer-through-the-launch-of-UPI.jsp

https://www.bankbazaar.com/savings-account/upi-and-upi-2-0.html

 

 

For more blogs, visit https://blog.sabpaisa.in

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