With UPI being introduced as a mode of payment collection, the stage is set to witness a revolution very similar to the telecomm revolution!
With UPI, every individual and business gets a virtual payment address (VPA). This is a unique identifier, something akin to an email id – “firstname.lastname@example.org”. A user just needs to share his or her VPA, instead of remembering and passing on cumbersome information such as bank account numbers and IFSC codes. UPI takes care of 2- factor authenticationt is interoperable as you can sign up on any bank’s UPI app with any bank account, if your bank has enrolled for it. And because it is built on IMPS, UPI works 24 x 7. That’s right – real-time all day!
UPI aims to digitize payments and reduce the costs involved by not relying on networks built by card organizations. This could become the preferred method for all peer-to-peer payments, and for customer-to-merchant payments. The ease with which users shall be able to pay through UPI will further help add more users to the digital economy (currently out of the 200M smartphones, only ~50M are transacting users).
Instamojo is working closely with UPI to increase its acceptance. We have a growing base of 150,000 businesses, and by giving them the UPI option, it is leading the charge for UPI adoption. We are also working with banks introduce promotional schemes that will drive awareness and adoption of UPI.
With UPI being introduced as a mode of payment collection to Instamojo’s users, the stage is set to witness a revolution very similar to the telecommunication revolution. This is an important step towards making India a cashless economy.