It achieved its landmark transaction of 16.58 billion financial transactions valued at ₹23.49 lakh crore in October 2024. It is the landmark that proves the relevance of UPI in India’s path toward digitization and expansion of the payment infrastructure in the country. From its launch by the National Payments Corporation of India in the year 2016, UPI has brought about a total change in conducting financial transactions in India with a secure, seamless, and quite fast payment gateway.
The Power of UPI in Numbers
It is turning out increasingly to be the key enabler of India’s digital economy. So far through October 2024, it had already processed a not-too-impressive ₹23.49 lakh crore through 16.58 billion transactions- impressive by how much the scale is rising – which, for one thing, represented 45% year-on-year growth over October 2023, while there go without saying upticks both in volume and value of transactions. At a time when there are more than 632 banks in the UPI platform, the rise in usage actually says what: how deeper digital payment penetration across the country has gone.
Soon it will be an essential inclusion in the march toward a cashless economy for India. UPI has moved the financial inclusion agenda in India with effective and cost-effective alternative ways of offering payment alternatives to millions who shift from cash to digital payments.
What makes UPI unique?
The success of UPI is due to unique features that encompass convenience, security, and versatility. Let’s take a closer look at what makes UPI stand out from other digital payment methods:
1. Round-the-Clock Accessibility
UPI is available 24/7, so users can carry out transactions at any hour of the day or night. That is quite important for businesses and individuals who need to make essential or out-of-hour payments.
2. Unified Banking Access
The uniqueness of UPI is its integration of various accounts in one application on a smartphone. This could, therefore, enable users to carry out their management of accounts and transactions using one application, rather than necessarily shifting between applications and platforms.
3.Seamless and Secure Transactions
Each transaction made with UPI is secure and in accordance with the regulatory standards due to the Single Click 2-Factor Authentication (2FA). The easy authentication process makes the payments quick, simple, and secure for the users.
4. Better Privacy
Since UPI functions on virtual addresses, the user need not provide personal information like bank account number or IFSC. This adds an extra layer of privacy and security to every transaction.
5. Payment through QR Code
UPI has made the process of fund transferring relatively easy through QR code payment support. A user can easily scan the QR code and make payments in stores, online portals, or for utility bills.
6. Cash-On-Delivery Alternative
Money is no longer needed in any specific transaction. That is the facility of both goods and service payments through online promotes convenience as well as safeness.
7. Merchant as well as In App Payments
Merchant as well as inapp payments both are permissible with the UPI feature. Therefore, it may be considered very convenient for all types of business firms.
8. Different Modes of Payment
All types of payment like utility bill, peer to peer transfer, scan and pay functionalities can be adapted according to sectors.
9. Flexibility in Transaction
Through the use of UPI, people can carry out any form of financial transactions involving donations, collection, or disbursement and many other actions.
10. Customer Support
This application has offered an avenue to any customer complaint and their respective progress against the case, increasing peoples’ confidence with the system.
Changes Brought by UPI in Indian Economy
UPI has brought a complete change in the Indian economy, particularly for small entrepreneurs, street vendors, and migrant workers, because UPI facilitated them in accepting money and remitting cash at a lower cost and without much hassles. The increase of UPI during COVID-19 times was in full swing because people opted for contactless cashless transactions rather than cash.
As such, even petty vendors, who are generally accustomed to transactions only through cash, now employ UPI on account of inventions like the voice boxes declaring each transaction, for example, in the midst of busy merchants, who won’t find the time to refer to their phone. The modest step taken gigantic enough to attract the confidence of the merchants who would otherwise hesitate to go digital.
International Expansion of UPI
UPI has crossed the boundaries of India. Till 2024, it has been launched in seven countries: the UAE, Singapore, Nepal, Bhutan, Sri Lanka, France, and Mauritius. The story of success is important because France was the first country in Europe to take on UPI, enabling Indian citizens and businesses to pay effortlessly while abroad.
Prime Minister Modi has been the newest crusader roaming about and marketing UPI into the BRICS nations. With all these expansions done with the evolution of UPI worldwide, this does place the nation firmly to take on that pedestal of emerging digital payment leads in the coming future.
India has recorded almost 49% of the total real-time payments transactions in the world for the year 2023 according to the ACI Worldwide Report 2024; this marks a country leading with digital payment systems. International UPI growth further sets new international benchmarks for economic empowerment and inclusion.
Conclusion: UPI’s Future Outlook
It is now changing the look of an Indian digital transaction to something which the people in their millions could embrace as their future cashless system. Easy, secure, and flexible, UPI is transforming to become India’s leading transactions platform. As UPI grows not only to become the backbone of the Indian economy but to spread its influence around the world, it is therefore destined to become a benchmark for digital payments, not only in India but in the world at large.
This will, in return, create further developed economic opportunities along with an enhanced financial inclusion of Indian leadership in digital payments through the power of UPI. It is increasingly felt with the growth of UPI, and it’s really empowering citizens while boosting the economy and keeping India at the center stage of global digital payments.
UPI has revolutionized the Indian economy to such an extent. It also serves as a good example for other countries to learn from. Hence, with such innovation and implementation of UPI, the future of digital payment indeed shines bright.
Reference:
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