India stands firmly atop many industries and boasts one of the fastest-growing markets, with a huge propellant of this being the government’s commitment to digital transformation. One of the primary ways in which India has gone about this is by establishing high-powered mobile networks in many regions, along with a mobile market that offers one of the cheapest entry points in the world.
Even though the digital transformation has only been underway for a relatively short period of time, innovations have been aplenty. Easily the most significant is the inception and adoption of the unified payments interface (UPI) brought in by the National Payments Corporation of India. It’s been great for the people, banks, and businesses, now set to get the upper hand on other payment methods as it’s free, secure, convenient and offers value-added services.
Perhaps what the NPCI didn’t expect is how quickly its creation would take off, and that the rest of the world would start to seriously take notice of the UPI system.
Growth of UPI across India
Simple to use, free of charge, and instantaneous: these core pillars have allowed UPI to soar in the Indian payment solutions space. The interface allows for people to transfer money seamlessly through a single window, using someone’s virtual address or via a QR code. As smartphone penetration continues to surge, thus allowing more people to get the mobile payment app, UPI will only continue to pick up speed.
The payment market of India had climbed to a mighty ₹101 trillion in 2020, with the tremendous growth being greatly credited to affordable mobile internet connections and the introduction of UPI. By 2027, at a compound annual growth rate, it’s set to exceed ₹280 trillion. UPI continues to be free and simple, with extra features to expand the omnichannel experience expected in the future to bolster it and the market further.
Rest of the World Taking Note of UPI’s Success
UPI has helped to make money even more accessible across India, but one of the primary aspects of the system that others are taking note of is its inherent security. eWallets have become big business in countries like the US and UK for their security properties. UPI ensures that customer data remains private as there isn’t an account number mapper outside of the user’s bank, with the VPA being the financial address without revealing bank details.
The security and privacy offered by UPI really help to open up the internet for users, which means that legitimate businesses are happy to join the trend. One such online market is that of gaming, with UPI casinos allowing for players to make deposits and withdrawals instantly and securely. Of course, the incredible levels of privacy offered by the UPI method also increases trust in the service.
PhonePe, Paytm, BHIM, MobiKwik, and Google Tez stand as the most popular UPI apps, but their success has encouraged even more big-name companies to join the fray. The popular messaging app, Facebook-owned WhatsApp, has worked its way onto the UPI, with it hitting 20 million users by late 2020. Now, it’s been properly approved by the NPCI, enabling it to grow its user-base further. Furthermore, Google has written to America’s Federal Reserve to indicate how UPI can be replicated in the US.
UPI has been a revelation in payment services, rapidly propelling the Indian market to incredible heights.