It doesn’t need to be said that UPI has revolutionized the way India transacts. Its remarkable rise and application across the country and sections of society have resulted in a level of financial inclusion and convenience that was previously unimagined.
UPI has succeeded as a reality because of its innovative and future-focused features, which continue to evolve and adapt to the needs of Indian consumers and businesses. Let's delve into some of the most groundbreaking aspects of UPI so far.
Real-time simplicity
The core strength of UPI lies in its real-time, 24/7 availability. Gone are the days of waiting for bank transfers to clear or relying on limited business hours. UPI's instantaneity has unlocked a world of possibilities, from seamless bill payments to lightning-fast money transfers between friends, family and businesses.
Interoperability
UPI's interoperable framework allows users to link multiple bank accounts with a single UPI number. This breaks down barriers between different banks, creating a unified payments ecosystem. Unlike traditional wallet systems, UPI directly operates with your bank account as the source and destination for transactions, enhancing security, and minimizing the need for multiple intermediaries.
UPI Lite: Expanding offline reach
UPI Lite is a game-changer, because it enables low-value transactions of up to ₹500 without requiring an OTP. UPI Lite changes the game further with UPI Lite X, particularly for rural India where internet connectivity can be spotty. It enables low-value transactions of up to ₹200 without a live internet connection. Funds get debited and credited later when the user's device goes online. This feature increases accessibility and promotes the adoption of digital payments in remote areas.
UPI 123Pay: Inclusivity for all
UPI 123Pay opens the world of digital payments for feature phone users. This feature allows users to initiate transactions by calling a dedicated IVR number, making payments through feature phones a reality. This initiative bridges the digital divide, empowering a vast population that previously lacked access to smartphone-based payments.
Voice-based payments
The integration of voice recognition and conversational AI is taking UPI to the next level. With voice-based payments, users can transact using simple voice commands in their native languages. This feature is particularly helpful for users with limited digital literacy or those with special needs, making UPI even more inclusive.
Credit Line on UPI: Seamless access to credit
The ability to link overdraft facilities or pre-approved credit lines to UPI introduces a new dimension of financial flexibility. Users can now make purchases even if their current balance is insufficient, with repayment seamlessly handled within the UPI ecosystem. This feature expands credit accessibility and could transform e-commerce and lending practices, particularly for small businesses.
Tap & Pay using NFC
UPI is embracing Near Field Communication (NFC) technology to provide a contactless payment experience. With 'Tap & Pay', users can simply wave their NFC-enabled devices near compatible merchant terminals for lightning-fast and secure payments. This promotes hygiene and convenience, further solidifying UPI's position as a go-to cashless solution.
BillPay Connect: Simplified bill management
BillPay Connect unifies bill payments under a single umbrella, accessible through messaging platforms. This feature allows users to fetch, view, and pay various utility bills, like electricity or mobile recharges, directly within their chat apps. It eliminates the hassle of switching between multiple platforms and streamlines recurring payments, saving users time and effort.
Subscription payments on UPI
This feature is designed for recurring payments or subscription services. Users can pre-authorize a transaction for future deduction from their bank accounts, ensuring timely payments without having to repeatedly initiate the transfer. This offers convenience and peace of mind, especially for customers who don’t have access to credit cards to make recurring payments
Signed intent and QR
UPI 2.0 strengthens security and combats fraud by allowing merchants to generate QR codes with a digital signature. When users scan the code, UPI apps can verify the authenticity of the merchant before initiating the payment. This acts as an additional safeguard, particularly in scenarios where physical QR codes can be tampered with.
Apart from these technical enhancements, UPI 2.0 features also focus on enhancing user experience and driving wider adoption. While UPI apps are continuously improving their design and interface, the addition of regional languages further increases UPI’s reach and makes it accessible to a broader demographic.
UPI revolution on FSS BLAZE™
FSS BLAZE™ is a microservices based payments technology platform that offers seamless growth, uninterrupted performance and effortless integration with modern-day digital banking solutions.
With its innovative features and seamless functionalities, UPI on FSS BLAZE™ helps in not only simplifying transactions but also expands possibilities and uses cases. BLAZE™ comes with a powerful PSP layer connecting the central infrastructure with banking systems.
Learn more about UPI on FSS BLAZE™ here.
