UPI Payments: NPCI is Looking to Port UPI Success to the Rest of Asia

The unified payments interface is one of the most successful modules established by NPCI. It has connected the country to make unified payments. The National payment corporation is looking for ways to build retail payment railroads in Asian countries as the flair for digital payments is on the rise. The government agency gas made set a subsidiary of NIPL (NPCI international) and a Kansas-based Fintech Company Euronet. Both have joined hands and have submitted a bid to the CBM (Central bank of Myanmar) to construct a real-time payments system combined with QR code generation and repository system. The idea was proposed by the South Asian nation.

An official said that The CBM project has received grants from World Bank and the successful implementation of the national payment corporation’s expertise would boost international aspirations. However, the bid might face severe competition from global payments giants such as Mastercard and Visa who also seem to be interested in the project. 

If the bid becomes successful, it will be one of the first among various other international projects that NPCI is planning in the Asian market. The Asian market includes several economies such as Malaysia, UAE and Singapore which are on the top of mass digitization and finding a way to build interoperable networks quite similar to UPI’s.

Digital payment thrust

There are various smaller economies dependent on cash in the global community. Myanmar is eyeing to build a national road of digital payments in these smaller economies. A lot of Indian fintech companies loved these projects to the UPI solution, IMPS and AEPS developed by national payment corporations over the past decade. If NPIL succeeds in developing an interoperable payment infrastructure for smaller jurisdictions such as Myanmar, they could establish their position as a serious international player.

Also, the RBI has opened the gates of challenge over NPCI’s dominance. It has opened gates for private entities to set up a variety of Umbrella entities. If NPCI becomes a global player, the dominance of NPCI can’t be questioned on the home turf.

This has not stopped NPCI from having international aspirations. Its popular payment network UPI payment has gained the attention of international organizations such as International settlement and google.

What is UPI? 

UPI or Unified Payments Interface is a payment interface developed by NPCI (National Payments Corporation of India). In simple words, you can define UPI payment system as an advanced version of IMPS.

How UPI works?

You can use the following to process UPI transaction

Payer app

Payment service provider or allows the customer to initiate a transaction. The payer app includes some common apps such as Gpay, Phonepe, Bhim, PayTM, etc. Payer apps have replaced traditional banking apps. While initiating a transaction, NPCI takes care of verification. Every app has a sponsor bank to start onboarding users.

Sender’s bank 

In UPI payment gateway, money is sent from the sender’s bank to the merchant or the receiver’s bank.

Finacus UPI solution

Finacus offers the best UPI platform with an API interface including the NPCI. It also integrates with the universal mobile interface. It offers a robust solution to keep security as the primary goal. The UPI payments offer a reliable solution with virtual addresses.

Bottom line

If you don’t have an UPI integrated system, contact the best financial solution provider, Finacus. You can get your hands-on demo and get the required information from executives.

5 Features of UPI 2.0

A unified payment interface is a real-time payment system. This system helps to transfer funds instantly between two banks, and you can do this with the help of your mobile phones. The launch of UPI was in August 2016. Ever since its launch, the face of digital payments has changed vigorously. Today UPI is one of the most preferred mode of payment.

A unified payment interface has undoubtedly simplified the digital payment ecosystem. This is even continually evolving to simplify even more and provide more benefits to the people. With the launch of UPI2.0, you will now be able to do a lot more than ever before. It comes with some new cool features that can take the digital ecosystem a step ahead. Read on more to learn about its unique features.

Critical features of UPI 2.0

Given below are all the new key features of UPOI 2.0.

One time mandate

This is one of the best features of the UPI payment system. With this, the customers can pre-authorize a Debit transaction from their linked bank account later. This UPI can be used in the scenarios where the money is to be transferred on a future date. You can schedule your payments while the money can be transferred later. The mandates are created with one-time book functionality. The customers can pre-authorize a transaction and can pay. In the case of the merchant payments or the service, this acts as an assurance to both the customer and the merchant.

Two-factor authentication

This is one of the security features that come into effect during the transaction process. While registering on UPI, the user will get an option to set an MPIN via mobile PIN. The MPIN is a 4 or 6 digit number set up while registering on the UPI app.

Generating it is an easy process. You can develop it by just clicking on the create or generate MPIN tab and entering your debit card details. In the transactions, the MPIN plays a significant role and is used to authenticate a transaction. Don’t worry if you forget the MPIN. You can change it if you forget it by using the same create or generate MPIN tab.

For Lggin MPIN is required, for transactions TPIN is required.

TPIN is 4 or 6 digits

Invoice in the inbox

When a collect request was is sent, one could only verify the amount being paid and make the UPI payment post entering the UPI PIN. This was done earlier. Now proper prior to making payments, the customers can check the invoice that is being paid via a link and thereby verify the transaction details before they pay for the same. This function is available for the invoices to the verified merchants. The customers will now get to view the bill in the UPI app. Also, they can verify the details and pay the invoice.

  • Linking of overdraft account

The customers can now link their overdraft account to UPI in addition to the current and savings account. This feature gives customers a digital channel to access their overdraft account. With this instant linking of overdraft account in the UPI payment gateway is also possible. Customers can now enjoy all the benefits associated with the overdraft account.

  • Signed intent and QR

 If the customer is making payment through scanning QR or the new intent, they will get the additional security in signed QR or intent.

FINACUS offers the FinUPI: Unified Payment Interface solution that is like a wallet but is more than just a wallet. Our solutions is having scalable architecture and have been developed, keeping in mind today’s security challenges. Request a demo for more information.

How UPI is Driving India’s Shift from Cash to Digital Payments

The economy of India was dominated by the use of cash half a decade back. There were only a few online payment methods such as National Electronic Funds Transfer (NEFT), and Real-Time Gross Settlement (RTGS). However, the tables turned with the birth of the vision for cashless India. The Reserve Bank of India wanted to make the existing payments system strong and streamline the settlement system with simpler and safer digital payment methods. A huge revolution occurred in the economy of India with the development of the UPI payments system- a real time payments platform.

An overview of the unified payments system

The UPI payment system was developed & is regulated by the National Payments Corporation of India (NPCI). The ulterior motive if this collaboration was cashless economy driven digital payments.

The UPI payment system synced perfectly with the increased use of smartphones. It is a mobile-based payments system allowing instant transfer or collection of funds between two accounts or two banks. Once you have registered your account with UPI, you need not go through the hassle of typing account number and other bank details every time you make some transaction. You can download any of the UPI apps from the play store and log in using your respective mobile number registered with the bank. You have to set a UPI pin, which is to be during every transaction.

They are used for both Peer-to-Peer (P2P) and Peer-to-Merchant (P2M) transactions. It can also be used for various value-added non-financial transactions like checking real-time balance and history of transactions.

What is the reason for traction among the masses?

The interoperability of the payments system and its ease of use interface make it popular and stand out apart from other payment solutions. The portable nature of the bank adds to the popularity of the real-time payment solution. This means that you can link your bank account to a UPI app provided by another bank or any app such as Google Pay. Also if a user has multiple bank accounts, they can link to a single UPI app. This drives easy payment from one account to another without entering different account numbers each time. When convenience is the key, its popularity cannot be questioned.

The simplicity of transactions is achieved by the use of a virtual payment address. The VPA searches and identifies themselves with another consumer without providing the bank account details. The VPA also helps in lowering the risks of fraud.

A wide array of features has paved the way for such huge popularity of the UPI solution. Apart from being a robust payments system for personal transactions, UPI offers great benefits for businesses. Merchants can use their mobile as a tool for the acceptance of payments. This brings down the cost of transactions compared to the traditional system like Point of Sale (POS) and QR code-based payments. The upgraded version of UPI offered benefits to the merchants such as pre-authorize a transaction, overdraft accounts on UPI, and stronger verification.

Unified Payment Interface Solution

We at finacus provide the best Unified Payment Interface (UPI) platform with an API interface and mobile interface for consumers. It helps in addressing today’s digital transaction challenges with a simple interface.

Bottom line

With about three forth merchants using UPI solutions, it is time for you to adopt a robust UPI platform. Know more about our solution FinUPI. Ask for a Demo Now.

How Can Digital Transactions Grow With UPI System

India has seen a huge transformation in the banking sector and economy over the past decade with the implementation of Jan Dhan Yojana scheme. The country is on its way to building a strong and prosperous economy with various banking solutions that bring people of all sectors under one umbrella. With the onset of digital payment software usage in India many came up with robust platforms. One such platform that made digital transactions in India more refined is the Unified payment’s interface. UPI was introduced by the National Payments Corporation of India in the year 2016. Over the past 4 years, digital transactions in India have seen new heights with the UPI payment system as the platform.

What is UPI?

The UPI is a simple and easy-to-use platform that is designed to transfer money between two parties. The UPI payments system allows interoperability and real-time transfer of funds with the help of a mobile number and a linked bank account. You can instantly transfer funds between two bank accounts with the account number of the beneficiary. The added benefit of the app is that you can link various bank accounts to a single banking app. Noticing the spike in popularity of the UPI system; the NPCI launched UPI 2.0 in august 2018. The 2.0 version is an enhanced version with features for sophisticated transfer of funds. The latest feature of UPI 2.0 is a reflection of how digital transactions have improved and increased over the past four years.

One-time mandate

In the latest version of the UPI system, the users can pre-schedule a transaction and pay later. The mandates of UPI 2.0 are designed to sport a one-time block functionality in whichthe transaction is committed in present and processed later. This has been a huge convenience for the users as the instant mandate generation leads to an automatic reduction of payments on authorized dates. This has provided individuals relief from the hassle of remembering endless bills generated at the start of every month.

Verification of invoice

The latest version of UPI payments has focused on making transactions easy for merchants as the days when merchants waited in a long queue for transfer of funds in the bank has long gone. Merchants can dispatch online invoices to the customers who can view the amount of orders and other relevant details of payments. Customers can also check the authenticity of the merchants by scanning their QR codes thus preventing the rise of fraudulent activities.

Use over-draft account

The merchants can withdraw money from their account even if it is cash-deficit.

UPI is the game-changer

In India, UPI has been the game-changer in the payment space of India and over the years it has become one of the fastest payment modes that have brought financial inclusion to the masses. Let us take a look at some facts that owe towards growing digital transactions in India with UPI.

  • Within January and December 2018, UPI saw 7x growth
  • The adoption of UPI grew in tier 2 and tier 3 cities apart from tier 1 cities.
  • In February 2020, recorded around 1.32 transactions that is worth INR 2, 21,995 crore
  • This is a growth of 1.4 percent from 1.30 billion in January of this year.
  • According to a report by world line UPI is the most preferred mode of online transaction in 2019
  • All the records were broken in December 2019 by UPI with 1.30 billion transactions worth INR 2 trillion.

Bottom line

These numbers are not going to stop here as the adoption of UPI solutions by people is increasing day by day. The UPI has proven to be one of the most downloaded apps in the year as digital transactions are more preferred than ever before.

Unified Payment Interface: The revolution in Banking Sector

UPI or as more commonly known as Unified Payment Interface is without a doubt a revolution in the entire banking industry. This is simply because of the ease of use it offers for both the users as well as the merchants and also the financial institutions. Let us take a deeper look to understand all of this better. Continue reading