Paying Through UPI: Becoming A Habit
Linus tackles things head-on. He takes sides in his analysis and it fits excellently with our editorial policy. No 'maybe's' and 'allegedly' for him, only things in black and white.
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By Linus Garg
First publised on 2023-09-04 08:24:14
About the Author
Linus tackles things head-on. He takes sides in his analysis and it fits excellently with our editorial policy. No 'maybe's' and 'allegedly' for him, only things in black and white.
View all posts by this Author
When the video of German Federal minister for Digital and Transport, Volker Wissing, buying vegetables from a roadside vendor in India and paying through UPI went viral a couple of weeks ago, it had gladdened many hearts in the country. The German embassy in India said that the minister was 'fascinated' by his experience. Close on the heels of that comes the news that in August, for the first time, UPI transactions crossed 1000cr to stand at 1024cr on August 30, with transaction value of Rs 15.2 lakh crore. The trend of using mobile phones for purchases or financial transactions has now become a habit with most Indians and UPI is witnessing double-digit growth every year.
UPI's journey began in 2016, and it has come a long way since. Initially, 21 banks were associated with UPI, including Indian banks and the National Payments Corporation of India (NPCI). Today, UPI is interconnected with various government and private banks, as well as cooperative and foreign banks, reaching all corners of the country. India is leading the world in adopting UPI for financial transactions. RBI Governor Shaktikanta Das has indicated that efforts are being made to extend UPI services even to basic feature phones. It is crucial to continue developing initiatives that connect diverse populations in the digital world.
India is making significant strides in expanding the network of UPI globally. Countries that have embraced different forms of Indian payment systems include France, UAE, Saudi Arabia, Bahrain, Singapore, Maldives, Nepal, Sri Lanka Bhutan, and Oman. This implies that Indians will now be able to make payments through UPI in these countries. The good thing is that UPI is being seen as peer-to-global payment network although it has not been accepted as such now. The Boston Consulting Group has predicted that India's digital payments market will increase more than thrice from $3 trillion to $10 trillion by the year 2026.
