The full form of UPI is Unified Payment Interface and it is controlled by the Reserve Bank of India. The developer of UPI is the National Payments Corporation of India. It is a real-time payment system which enables people to transfer funds from one bank account to another through a mobile app.
It is a part of the Government of India’s ambitious program named Digital India, which focuses on promoting digital tools and digitalization of numerous processes. In the past few years, the popularity of UPI has increased considerably. Numerous payment apps are based on the UPI payment system and the daily transactions taking place through these apps are over 100 million per day. With such high popularity, it has changed the banking sector in India considerably.
Why UPI grew this large
UPI became considerably popular after demonetization. The focus of the Government of India was on promoting the use of digital payments to enhance transparency and improve the banking eco-system. Due to the scarcity of cash, UPI-based apps and e-wallets became the primary tools for making transactions.
Although the growth of these apps slowed down a little after a considerable amount of cash entered the economy, until then, UPI-based apps had become an essential part of a common man’s life.
Another major factor which boosted the popularity of such apps was the rise in the number of smartphone users. As the number of smartphones grew, more people became able to use these apps for making transactions. UPI has improved the process of transferring funds faster and easier. There are many benefits of using UPI-based apps, some of them are as follows:
- Faster payments
UPI has enabled people to make payments faster as it utilizes the Immediate Payment Service, also known as IMPS.
- 24/7 availability
It is a digital platform so the users can make payments 24/7 without any kind of difficulty.
- Multiple accounts sync-in
One can access multiple bank accounts with a single mobile app. This helps in easing the process of managing different accounts.
- A secure platform
UPI offers a secure method to make transactions. One gets a Mobile Banking Personal Identification number only through which, one can make payments on UPI.
- Use for paying bills
UPI enables people to pay bills from any location at any time, which reduced the day to day hassles for many people.
As you can see, the climb of the UPI payment system is quite steep. It has risen as one of the most influential developments in the banking sector in India. With its high popularity and rising importance, it is necessary for current financial organizations to utilize this platform and seize this opportunity.
You can choose to hire a good UPI service provider to develop an easy to use and attractive digital banking solution for your customers. You will not have to face any difficulties in this regard. Moreover, if you have any queries regarding this matter, feel free to communicate.