As part of Indian government’s push for electronic money, the National Payments Corporation of India (NPCI) have developed a Unified Payments Interface. The UPI is expected to bring about a significant shift in the way mobile banking transactions are conducted in India by allowing users to make payments using mobile phones as the primary device without the need to download an app to send or receive money.

Use of e-wallets

Local experts believe that users may no longer need an e-wallet. However, people will also be able to use multiple e-wallets seamlessly as they are expected to become interoperable with UPI.

Identity disclosure

It is expected that there will be no need to disclose identity when making payments. Users just have to give a virtual address to the merchant, who will then request money from it. The user will get a message on the mobile phone asking for authentication. Once the password is entered, the transaction is complete. 

Importantly, users don’t have to share their bank details with the merchant because the UPI runs on Immediate Payment Service (IMPS) platform. The service will be available in real-time.

Two factor authentication in one-click

NPCI’s UPI enables two-factor authentication in one click on mobile phones across bank accounts.

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CTMfile take: The UPI could change how consumers in India expect to pay for your services at point of sale. At the moment, only a few banks have signed up for the service, but when all banks employ the UPI service, then it will be essential to be able to accept payment through the UPI at all your points of sale