Know Future of UPI Payments in India?

Unified Payment Interface or UPI is a real-time payments system, which was developed by the National Payments Corporation of India (NPCI). UPI was an unknown phenomenon in India until April 2016. In about 6 years since its launch, UPI is now a force to reckon with in the country's ongoing digital payments revolution.

While UPI has already gained widespread popularity in the country, the technology is still evolving, and the use cases will only expand with time. 

So, what is the future of UPI payments in India? Let's take a look -

UPI-verified merchants can send digital invoices directly to the customer's inbox, along with a collection request.

Once a merchant sends the invoice, it can be accessed by the customers through their inboxes. A link can be used to verify transaction details before making the payment through UPI ID.

QR-based UPI frauds have been extensively rising in the country. To minimize such frauds, the UPI platform can have a signed/intent QR feature.

With this, the QR code will contain important invoice parameters and a digital signature, so users can verify payee details more effectively. Moreover, signed QRs will also help reduce QR tampering issues.

Apart from Savings and Current Bank Accounts, customers can be allowed to link their Overdraft Accounts to their UPI.

With this feature, UPI could instantly become an additional online channel from which customers can access their Overdraft Account and its facilities. 

A one-time mandate is a facility that allows customers to pre-authorize transactions that are processed at later dates.

You might have already used the e-mandate facility for your EMIs or Mutual Fund SIPs through your NetBanking account. The same facility can be availed through UPI for added convenience. 

UPI can also make EMI collection easier for financial organizations, especially for small-ticket loans.

For instance, lenders can adopt a cyclical approach and send collection requests on UPI with monthly EMI statements to the customers. Borrowers can review the payment request and instantly make the payment through a UPI transaction.

Recently, RBI announced the launch of RuPay Credit Cards on UPI to further boost online payments in the country. Pertaining to this move, the NPCI launched a new feature that allows customers to link their RuPay credit cards to the BHIM UPI App or any UPI App. Once linked, it'll make payments more accessible via QR codes and minimize the need for PoS (Point of Sale) machines for offline merchant payments.

Moreover, as the Credit Card will be linked to UPI, customers can make offline payments from their Credit Cards directly through the UPI or Banking App, eliminating the need to carry the card all the time.

Read More: Understanding the Safe Use of UPI

• The growing adoption of smartphones and the rising internet penetration will only make UPI more popular in the country.
• Moreover, as the technology evolves, newer use cases will emerge to simplify and secure online payments further.

AU Small Finance Bank's AU 0101 App comes integrated with UPI. Customers can log in to AU 0101 App to create their UPI IDs and explore the extensive benefits of this payment platform.