Unified Payments Interface: Why Made-in-India UPI is becoming a global favourite? | Mint - Mint

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Unified Payments Interface (UPI) has emerged as a game-changer in India's quest for a digital future. By enabling seamless, secure, and inclusive transactions, UPI has transformed the way Indians transact, empowering millions and driving economic growth. UPI has revolutionised India's payment sector and is becoming more accessible to non-resident Indians in several nations.

Why is UPI becoming a global favourite?

UPI is becoming a global favorite because it is a fast, secure, and the most convenient way to pay.

"With $1.7 trillion worth transactions in fiscal year 2023, India’s UPI is becoming a global favourite. Many countries including Japan, Singapore, UAE, France, UK, and Japan have shown their intention to embrace UPI," tweeted Ashish Chauhan, CEO of the National Stock Exchange of India (NSE).

The fiscal ending March 2024 is also seeing tremendous growth in UPI transactions in the first 6 months. This fiscal will see an even better record for UPI, he added.

“It is not only affordable, and interoperable but also scalable and adaptable, making it easy for other countries to embrace it. UPI is gaining popularity in other countries because of these capabilities," said Amit Nigam, Executive Director & COO, of BANKIT.

What sets UPI apart?

What sets UPI apart is its exceptional ease of use. It surpasses even the traditional cash mode of payment, offering an unparalleled level of convenience.

According to Shikhar Aggarwal, Chairman of BLS E-Services, UPI is establishing new benchmarks for international payment systems by streamlining payment processes and expanding access. This transformative technology is more than just a digital payment platform; it's a symbol of innovation and progress on a global scale.

"It's no surprise that countries such as Japan, Singapore, the UAE, France, the UK, and more are keen to embrace the UPI model as they recognize its potential to reshape the future of payments on a global stage," said Shikhar Aggarwal.

The ease of use and accessibility of UPI has made it immensely popular across the nation, bridging the gap between urban and rural areas.

“UPI connects over 300 banks and enables seamless financial transactions through TPAP (third-party application providers) like Google Pay, Amazon Pay, PhonePe, and Paytm in partnership with banking providers," said Mehul Mistry, Global Head - Strategy, Digital Financial Services & Partnerships, Wibmo, a PayU company.

“In an era where safeguarding personal information is paramount, UPI emerges as the answer to this critical challenge. By eliminating the need to disclose sensitive account information, it provides an impregnable fortress against vulnerabilities and cyberattacks," said Balaji Jagannathan, Co-Founder and Director of Paycorp.io

UPI was launched by the National Payments Corporation of India (NPCI) in 2016 and has rapidly gained momentum. The widespread adoption of UPI underscores the urgent need for secure, efficient, and user-centric payment methods. As more nations recognize the undeniable advantages of UPI, it is poised to revolutionise the global financial landscape, setting new standards for secure, convenient, and efficient financial transactions.

Disclaimer: The views and recommendations made above are those of individual analysts, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.

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