By March next year, NPCI aims to take up the number of daily transactions to one million. It also expects the number of registered users to go up from two million now to three million within a month.
UPI went live on August 25. By using this application, a customer can transfer money to another person via a unique virtual address (virtual addresses are aliases to a bank account, allowing a customer’s account to be uniquely mapped), or mobile number, or Aadhaar number. And, therefore, customers do not need to know the payee’s IFSC code, bank account details, etc, thus, making the process simpler.
UPI is built on the existing Immediate Payment Service, or IMPS, which allows real-time transfer of money 24x7, and is also interoperable across banks.
Another distinguishing feature of UPI is that it allows one to send a request asking for payments. As a result, e-commerce and merchants are expected to drive growth as it would allow them to send invoice requests and make payments and settlements much faster. However, merchants haven’t yet become a part of UPI in a significant way. But now, in what is being termed UPI 2.0, merchants are supposed to come on board.
Apart from SBI and HDFC Bank, the others accepting payments through UPI include Axis Bank, ICICI Bank, Union Bank, YES Bank, IDBI Bank, HSBC, etc. Earlier, the launch for the UPI was slated to be July 31, which had to be postponed by a month, as some banks were not ready.