Unified Payment Interface, also called UPI is a payment system where one application controls multiple bank accounts belonging to any participating banks. Numerous banking features like money transfers, merchant payments, etc. are available on a single platform. Moreover, the ‘Peer to Peer’ collection feature executes the scheduled payments according to the convenience of the parties involved.
August 2018 saw the launch of UPI 2.0, a new and upgraded version of UPI by the National Payments Corporation of India (NPCI). The NPCI is an organization that handles retail payments in India, which includes the UPI platform that helps instant fund transfers. UPI does not require any details of the beneficiary, which acts as an advantage. The improved version of UPI is said to be more secure, has an easier authentication process and comprehensive service.
With pre-existing features like all time instant money transfer facility, sharing bills with friends, etc. UPI 2.0 has new features.
- Pre-Authorized Transaction: The Pre-Authorized UPI transactions allow you to schedule your bill payments. For a regular bill payment like that of a Mobile phone bill or electricity bill, the UPI solution allows customers to authorize payments to the biller on a particular date.
- Biometric Authentication: UPI payments are set to become more secure with the fingerprint mapping technology along with iris scanner. The Aadhaar card will help with biometric authentication as the UIDAI has the database of biometrics of majority of Indian citizens. Cell phones with a high-resolution cameras and fingerprint scanners can be used to authorize a transaction.
- Invoice in the Inbox: According to NPCI, this feature is for customers to check invoices sent by merchants to view and verify credentials before proceeding with the payments. Make the payments only after being satisfied with all the details mentioned on the invoice.
- Check on Speed of Transaction: The NPCI has added a new feature of velocity checks for UPI transactions. These checks will help catch the fraudulent transactions are detected before they are completed. The app allows reporting a suspicious transaction to the bank for them to take necessary actions.
- Aadhaar Based Payments: UPI solution providers have introduced payments using Aadhaar numbers. Unlike mobile numbers, which have the possibility of being handled by several customers, the Aadhaar number is unique to an individual. The Aadhaar cards can be linked with bank accounts, making transactions directly from the bank accounts easier.
The UPI 2.0 does not only benefits banks, but also the customers as well as the merchants. It serves banks with a secure platform for universal transactions, and the payment doesn’t require details of the beneficiary. It helps the customer with its availability, single click authentication, and a single platform with access to different multiple bank accounts. The merchants benefit from it as well, UPI serves as a digital payment system for seamless transactions, which helps them tap into a larger pool of customers.
Finacus UPI2.0 solution offers a platform consisting of Application Program Interface (API) with NPCI and a universal mobile interface for the consumers. Their UPI solution supports a scalable architecture and has been developed keeping in account the complex security challenges people face in today’s date. UPI 2.0’s goal is to provide a reliable and simplified payment option with a virtual address for money transactions. A step ahead of the banks, it allows interoperability and presents an opportunity to push for a single interface for all existing retail payment systems in India.
UPI 2.0 is a better and enhanced version of the UPI payment solution. With a pack of new features, it has made UPI more beneficial, comprehensive and easily accessible.