How the technology of UPI has revolutionised digital payments in India

New Delhi: Up until about a decade ago, India was largely a cash-based economy. Online payments were unheard of and visiting the ATM was a weekly chore. Payments with cards were conditionally available, maybe in some big stores, but definitely not enough to only rely on them. However, thanks to the joint efforts of the Demonetization as well as the pandemic, people had to leave their reliance on cash payments and switch to more reliable and convenient digital payment options.

While the digital payment revolution started in India with brands like Paytm at the helm of the movement, the NPCI soon created the revolutionary technology of UPI. And UPI quickly became the preferred way for Indians to pay, with PhonePe and Google Pay quickly becoming the most favored UPI apps.

However, the technology of UPI has not only changed the way Indians pay but also has managed to benefit many interconnected industries and brands. In fact, UPI can be attributed to changing the way online shopping and subscription-based services work, with many other businesses benefitting from more and more people relying on the service of UPI.

How has UPI benefited online businesses and brands?

One direct way that UPI has created business opportunities is that it allows the third-party apps that offer the service. From PhonePe, Google Pay, and Paytm to JioMoney, MobiKwik, Amazon Pay, Whatsapp Pay, and more - users have no dearth of choices when it comes to making UPI payments. The inter-operability of these UPI third-party apps has allowed many new apps and services to crop up that directly facilitate online payments. 

Some secondary and tertiary benefits have obviously been felt in other online industries that rely on online payments. Some of these include online shopping, OTT services, online gaming apps, as well online betting sites that depend on quick online transactions.

UPI has brought audiences that were previously unfamiliar with online payments and were thus closed off to online businesses and services to the forefront and allowed them to be converted into paying customers and users. 

How is India leading the digital payments revolution in the world?

The technology of UPI has obviously created waves across the globe, with more and more countries now signing up for the digital payment service to be integrated. Nepal and Bhutan have already begun taking payments through UPI, and the service is expected to launch in Singapore later this year. 

Lyra Network, a French company, has announced that it would soon implement UPI into the country, in a way that makes use of the interoperability of the digital payment service, which gives UPI its entry into the European Union. Last but not least, the NPCI is also collaborating with Australia to integrate UPI into the country’s own payment system.