“The Power of Indian UPI: Now it’s open to Make Global Payments, read to know more how it works. And what’s its impact on Indian market”

As of last update, UPI has expanded its reach to approximately 35-40 countries outside India. Around 40% digital transactions of total digital transactions in the world are occurring in India. Real time digital transactions in India are facilitated by UPI. France and other countries accepting UPI, offering significant cost savings of almost 6% in transaction fees. Additionally, Saudi Arabia has recently started accepting UPI as well. This global acceptance of UPI is benefiting users and businesses by enabling seamless and cost-effective cross-border transactions.

NRI’s sending money to India from across the world typically incurs high transaction fees, ranging from 6% to 10%, when using methods other than UPI. However, by using UPI for these transactions, they can avoid these high commission charges and save a significant amount of money. UPI offers a more cost-effective and convenient option for sending money to India from abroad.

In 2023, India took advantage of its G20 presidency to promote the global acceptance of UPI. During the event, international delegates were given a demonstration of UPI’s capabilities and benefits. The demonstration showcased how UPI facilitates real-time transactions and enables cost-effective cross-border payments, making it an ideal payment solution for individuals and businesses worldwide. The goal was to encourage other countries to adopt UPI and leverage its potential to enhance financial inclusion and foster a cashless economy on a global scale.

Geopolitically, UPI has played a crucial role by reducing the dominance of international players like MasterCard and Visa. With UPI providing an alternative payment option, it offers more independence to countries and reduces reliance on American-controlled card transactions and services. This shift helps countries, including India, gain more control over their financial systems and promotes a more balanced global financial landscape.

Unified Payments Interface (UPI) is a domestic payment system primarily used for transactions within India. It is regulated by the National Payments Corporation of India (NPCI) and operates on the Indian banking system. While UPI is widely adopted and used by individuals and businesses within India.

UPI is designed to facilitate real-time payments and fund transfers between Indian bank accounts, and its usage is limited to the Indian financial ecosystem. Other countries usually have their own payment systems and infrastructure in place, and cross-border transactions are typically conducted through international payment networks like SWIFT, PayPal, or other means specific to each country’s banking and payment regulations.

Unified Payments Interface (UPI) has revolutionized the way payments are made in India and offers several benefits to users, businesses, and the economy.

Some of the key benefits of UPI include:

Seamless and Instant Transactions: UPI enables quick and real-time fund transfers between bank accounts. Users can send and receive money instantly, 24/7, without any delays or waiting periods, making it a convenient and efficient payment method.
Interoperability: UPI is interoperable, which means it allows transactions between different banks and payment service providers. Users can link multiple bank accounts to a single UPI ID, streamlining their payment processes across various accounts and banks.
Simplified Payments: UPI eliminates the need for sharing bank details or sensitive information while making payments. Users only need to know the recipient’s UPI ID, mobile number, or QR code to initiate transactions, making the process user-friendly and secure.
Enhanced Security: UPI transactions are secured with multi-factor authentication, including PIN and biometrics (fingerprint or face recognition). This ensures a high level of security and reduces the risk of unauthorized transactions.
Cashless Economy: UPI encourages digital payments, reducing the dependence on cash transactions. This contributes to the government’s vision of building a cashless economy, promoting transparency, and reducing black money circulation.
Financial Inclusion: UPI has played a crucial role in promoting financial inclusion in India. It has allowed people from all sections of society, including those without a smartphone, to participate in digital transactions through UPI-based apps on feature phones.
Promotes E-commerce and Digital Payments: UPI has provided a boost to the e-commerce sector in India. It facilitates quick and hassle-free payments on various online platforms, leading to increased online sales and business growth.
Cost-effective for Businesses: UPI transactions have lower transaction costs compared to traditional payment methods like credit cards. For businesses, this means reduced payment processing fees, making it an attractive option for accepting payments.
Government Initiatives: UPI is supported and promoted by the Government of India as part of its Digital India initiative. The government uses UPI for various schemes and benefits transfer, ensuring direct and transparent transfers to beneficiaries.
Supports Financial Innovation: UPI has encouraged financial institutions and fintech companies to develop innovative payment solutions and value-added services. This has led to a thriving ecosystem of UPI-based apps and services that cater to diverse user needs.
Saving cost of Government: As more people use UPI as a digital wallet, the government is saving money on replacing damaged physical notes. UPI’s popularity is reducing the wear and tear on currency, resulting in cost savings for the government.

Overall, UPI has played a significant role in transforming India’s digital payment landscape and has brought convenience, security, and financial empowerment to millions of users and businesses across the country.

Conclusion:

In conclusion, the global acceptance of Unified Payments Interface (UPI) marks a significant milestone for India’s digital payment ecosystem. With approximately 35-40 countries accepting UPI, the platform has expanded its reach beyond India’s borders, offering numerous benefits to Indian users and businesses engaged in cross-border transactions.

The widespread adoption of UPI in India, highlights its growing popularity and efficiency as a payment method. As more countries, such as France and Saudi Arabia, start accepting UPI, users can take advantage of its real-time transactions and cost-effectiveness to avoid high commission charges associated with other modes of money transfer.

Moreover, UPI’s global acceptance contributes to India’s vision of a cashless economy by reducing the wear and tear on physical currency, leading to cost savings for the government in replacing damaged notes.

Overall, the international recognition of UPI demonstrates its potential as a transformative force in the global financial landscape, fostering convenience, efficiency, and financial inclusion for individuals and businesses across borders. As UPI continues to evolve and expand its reach, it has the potential to reshape the way people conduct transactions worldwide.