National Payments Corporation of India (NPCI) introduced a range of innovative products aimed at propelling the Unified Payments Interface (UPI) towards the ambitious goal of achieving 100 billion monthly transactions. These new features include credit lines on UPI, a conversational payment mode called ‘Hello UPI,’ BillPay Connect, UPI Tap & Pay, and UPI Lite X. This move follows UPI’s recent achievement of processing 10 billion transactions in a single month in August.
A Push for 100 Billion Transactions
The NPCI’s announcement comes as a significant step towards expanding the reach and functionality of UPI. In the presence of Shaktikanta Das, the Governor of the Reserve Bank of India (RBI), and Nandan Nilekani, the co-founder and non-executive chairman of Infosys, these offerings were unveiled at the Global Fintech Fest in Mumbai. Nilekani praised NPCI, referring to it as the “crown jewel of India’s technology sector.” He emphasized that NPCI’s model has set the stage for various non-profit bodies in India, including those for taxes and digital infrastructure, to create a digital public ecosystem.
Digital Infrastructure and Entrepreneurship’s Role
Nilekani highlighted the role of digital infrastructures like Aadhaar and UPI, along with the rapid growth of startups, in driving India’s transition from an offline, informal economy to an online, formal, high-productivity economy. He pointed out that India has witnessed a tenfold increase in the number of startups, from 1,000 in 2016 to 100,000 in 2023, a testament to the entrepreneurial spirit and the digital transformation taking place in the country.
Shaktikanta Das on UPI’s Success
Governor Shaktikanta Das applauded UPI’s remarkable success, citing the scale it has achieved in a relatively short period. In August 2023 alone, UPI processed over 10 billion transactions worth more than Rs. 15 trillion. He attributed this success to India’s technology stack and the widespread use of mobile phones and the internet for digitalization.
Exploring the New UPI Features
1. Credit Line on UPI: Users can now scan a QR code through their UPI-linked apps to purchase products, select their preferred bank, enter the amount, and choose a credit line. This feature is currently live with select public and private sector banks, and payment apps like Bhim, Paytm, Payzapp, and GPay.
2. Hello UPI: This conversational payment mode can understand language and silence, convert text into numbers, and offer text-to-speech capabilities, making transactions more user-friendly.
3. UPI Lite X for Feature Phones: Feature phone users receive an upgrade with UPI Lite X, enabling peer-to-peer transactions without an active network or internet connection. Transactions can occur with a simple tap between phones, provided they are NFC-enabled. Money transfer initiates as soon as either phone enters a network zone.
4. UPI Tap & Pay: This feature involves small cards with NFC chips that link to a user’s unique QR code and UPI ID. Users can obtain these cards at partner banks through contactless UPI card generating kiosks. After selecting a card design and scanning their QR code, the card is instantly linked to their UPI ID. Users can attach the card to their mobile phones for convenient tap-based payments.
NPCI’s introduction of these innovative UPI features marks a significant leap towards achieving 100 billion monthly transactions, further solidifying UPI’s position as a vital component of India’s digital payment ecosystem. These advancements not only enhance convenience and security for users but also reflect the growing role of technology in driving India’s transformation into a formal, high-productivity economy. With a supportive digital infrastructure and a thriving entrepreneurial landscape, India is poised for continued growth in the fintech sector, leveraging innovations like these to shape the future of digital payments.
