The success story of UPI - best payment system of India.



There are two types of payment systems, International and Domestic while each of them has it's own policies international is used when people want to transfer money to an individual or company outside of his country that costs conversion fees based on the payment services and country then comes domestic most countries has thier own domestic payment system for people.


Usually, international payment system is very different to domestic payment system as countries develop domestic payment system based on several factors each country domestic payment can have it's own payment system technology that caters needs of people for instance india has it's own payment system named UPI aka Unified Payment Interface developed by National Payments Corporation of India aka NPCI.


In year 2016, indian government demonetized old 500rs and 1000rs currency notes due to various reasons especially to reduce corruption that is for sure good initiative but people faced alot of issues to immediately get new currency notes as banks are crowded and ATMs are out of money thus massive confusion and disturbance occured within public as they are unable to buy daily goods for personal and work purposes.



However, most people see currency de-monetization in india as failure but the fact they forget is currency ban digitalized people as people are struggling to get new currency notes they shifted to online payment platforms like PAYTM to send money to individuals and merchants even people who never used smartphones and digital technologies in life started learning online payment platforms to send money.


But, the existing domestic payment systems like NEFT and RTGS are widely used in india yet they are bit slow due to that people used to face alot of issues like delay and failure in payments etc to fix this issue and improve payment system in india on April 11, 2016 india government launched faster payment system named UPI aka Unified Payment Interface.

UPI is real time payment system that allows you to instantly pay 1 lakh INR to any India bank securely and easily since it is very convenient and reliable gradually indian people and merchants started using UPI payment systems aka UPI due to that almost all online payment platforms in india integrated UPI payment system on thier app and website.

Especially, PAYTM a popular Indian online payment website played major role to digitalize people at the time of 2016 currency demonetization and got super success then in year on Nov, 2017 PAYTM announced to integrate UPI on it's platform to double to it's users base since PAYTM already have millions of users they started using UPI to send money that increased UPI payment system users exponentially.


The immense success of UPI received world wide attention thus almost all banks and global companies started integrating UPI on thier apps and websites especially Google launched it's own UPI payment app in year August 17, 2017 named Tez that was renamed to Google Pay in year 28 August, 2018 become people favourite choice to do online payments as it will reward when people do UPI payments.

Google Pay is most downloaded UPI app that ensured UPI userbase to new heights Google even suggested united states federal reserve to develop real time payment system Fednow like UPI but in year 2020 indian government said it will not allow more then 30% UPI transactions to private UPI apps that decision didn't liked by Google as they do more then 30% UPI transactions on it's app like PAYTM.



In india, we have many UPI apps out of them two big players are Google Pay from US company then PhonePe which was an indian company but later on buyed by US company Walmart following the success of Google Pay and this two payment apps do majority of UPI transactions in india that put indian payment apps out of site except PAYTM by One97.


In year 2019, world's most popular online shopping platform " Amazon " finally understood that they may loose large percentage of buyers if they don't integrate UPI payment option on it's website and app thus as you may know Amazon like to provide best and flexible features for thier customers so eventually they released UPI service on it's existing Amazon Pay which is competitor to Google Pay and PAYTM and PhonePe but feels like Amazon didn't have any issue on 30% UPI transactions cap as they didn't shown any sign of  displeasure so far.

The foriegn UPI apps dominance on india's payment system put government goals at risk as they want to promote and make people use india products through schemes like Make in india and Aatma Nirbhaar Bharat that could be the reason they may put 30% UPI transactions cap on private UPI apps or they may want to make people use government made UPI apps like BHIM for various reasons.

Anyhow, the number of people who use and depend on UPI transactions to do online payments keep on increasing as of now they are more then 15 million active UPI users in india as it's very successful india government in order to reach UPI to everyone they recently launched an MMS code *99# that will also work on keypad phones without any internet connection thus anyone who don't have smartphones can use UPI to send digital payments.


Now a days, even keypad mobiles are preloaded with UPI payment apps for instance Reliance industries mobile network provider Jio launched it's own keypad mobile named JioPhone that uses Kai OS a fork of Firefox OS included online payment app JioPay with voice based UPI payment feature thus anyone can use and enjoy the benefits of UPI in one tap.


Recently, UPI 2.0 was released which has better features then UPI 1.0 as UPI is in continuous developements to fit the needs of developing country with new modern technologies we may get UPI 3.0 soon that will provide good and services taxes to merchants on digital payments until then  right now UPI 2.0 is assuring for sure.

• UPI 2.0 key features •

- Linking overdraft account on UPI
- Mandate
- Invoice in the box [ View and Pay ]
- Signed Intent and QR 

It is well known fact most people like to use UPI in india and global companies are aware of it as india remittance charges are increasing western union and NIPL going to integrate UPI for Indian people to send and receive money abroad from then very likely many banks and foriegn online payment apps can integrate UPI to adopt and simplify the process for indians. 



Indian government is also very much interested in extending capabilities of UPI they recently created and distributed e-rupi gift vouchers like Amazon e-gifts cards to qualified people under schemes and also said that e-rupi going to be the pre-cursor to India's central bank digital currency aka CBDC yet to be launched in future.


The experiments on UPI can lead to new innovations and better payment system for india even though it is now secure and safe with capability to be international payment system yet it would be more awesome if UPI payment system is developed by an indian company as they will commercialize and become global company like Google instead UPI is free technology limited to india in hands of government entity that is fine anyway.

UPI is in right track on smooth path thanks to indian government regular observations and updates due to that almost all india based online payment platforms included UPI payment option as people knows it very well even though no one can say what can happen tommorow but as UPI is potential technology even united states don't have it thus UPI can have bright future ahead until a better payment system introduced in india.

Finally, UPI is everywhere in india it was connected to indian people at such level that you can't escape from it once in while there will be situation that make you to depend on UPI if you're living in india, are you an existing user of UPI? If so do say your experience? and mention your opinion on future of UPI in our comment section below, see ya :)
Tech Tracker

I'm Mark Evans from india, I like technology and it's related fields from childhood being very passionate to read and share knowledge, I made this blog in focus of sharing technology topics In simplified manner.

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