Smartphones will now become an important part of your daily life by doubling up as a portal for making payments, sending and receiving money etc


  1. UPI will make the payment systems fully inter operable across all payment system players without having silos and closed systems, removing simplicity arbitrage, by enabling one click for two factor authentication, that some pure play remittance players have been using. This would force wallet players to look at ecosystem plays to bring in differentiation.
  2. The launch of UPI will catalyse low cost, high volume payments and create a new ecosystem that banks / billers may adopt and offer simpler and instant offering of UPI to their customers.
  3. UPI is likely to benefit the banks also significantly as the service can be provided by the bank to the merchant with a basic smartphone and there is no need to install PoS machine at the place of business. Thus it is likely to reduce the overall merchant acquisition cost for the banks by providing a solution to the merchant that is conducive and have long term benefits.
  4. UPI will serve wider audience through offering a ‘collect’ feature, improves the entry barrier for startups and smaller businesses, allowing even an individual to function as a businesses (by themselves) solving their problems of collecting money for products and services.
  5. This innovation will bring all the key stakeholders such as the consumer, the merchant and the banks on a common platform, creating a plethora of services that are unheard of in today’s global payment offerings.
    UPI is a big leap for a growing economy like India. Consumers would be able to transact without the paper money and without facing a number of barriers.

Three easy ways to use UPI

Mobile only platform: UPI is a mobile interface and will work on mobile phones only.
How to use UPI: Some banks have integrated UPI into their existing apps. Some have launched new ones for it. Users download the app and register (the important part of this is a virtual ID and mobile PIN or MPIN).
Send money using Virtual ID: Users can send money using their virtual ID only. And you can shop using the virtual ID. Enter the virtual ID on the payments page of the vendor and you will receive an alert on the mobile asking you to authorize the transaction.