In today’s world, online payments have become very important. Most people prefer making payments online for everything from small purchases to big ones. With changing times, the technology and lifestyle have also evolved, affecting our economy. UPI, or Unified Payments Interface, has become an essential part of our lives. From buying vegetables to making payments in malls, people are increasingly using UPI. Let’s take a look at how UPI has influenced our lifestyle and what the future holds for it.
The Future of UPI
UPI was launched by the National Payments Corporation of India (NPCI) in 2016. By the end of 2017, UPI transactions had increased by 900% compared to 2016. This significant rise was because people, who used to avoid digital payments, now feel comfortable making online transactions.
UPI has not only gained popularity in India but also made its mark internationally. Besides India, 10 other countries have adopted UPI. These countries include Singapore, the USA, Australia, Canada, Hong Kong, Oman, Qatar, Saudi Arabia, UAE, and the UK.
Over time, UPI has seen many updates and new features. By 2023, many changes had been made to enhance its functionality. When UPI was launched in 2016, it provided customers with several conveniences. People started moving away from the hassle of carrying cash. UPI allowed customers to connect with their bank accounts and make transactions easily. This means anyone can complete a transaction from anywhere by following a few simple steps.
Key Features of UPI
One of the most impressive features of UPI is that NPCI does not charge any fee for transactions made through UPI. This means all transactions are free of charge.
To make transactions even simpler, UPI allows payments through QR code scanning in addition to phone numbers. Anyone can scan a QR code to make a transaction from anywhere.
NPCI has also worked hard to improve UPI. They launched UPI Lite X for offline payments, enabling users to make transactions even without an internet connection. This feature is particularly useful when users are on flights or in underground metro stations where internet access is limited.
Impact of UPI on Cash Transactions
Since the launch of UPI, there has been a noticeable change in cash transactions. According to GlobalData research, cash transactions, which were around 90% in 2017, dropped to less than 60% by 2021.
The Bright Future of UPI
Looking ahead, there is no doubt that UPI has a bright future. UPI currently accounts for 75% of India’s digital transactions. It is expected that by 2026, UPI transactions in India will increase fourfold.
According to a report by PwC, the impact of UPI will also be felt in the agricultural sector in the next five years. This is because UPI’s reach in rural areas will expand, leading to a rapid increase in digital payments in this sector. It is anticipated that UPI could contribute up to 90% in the agricultural sector. Farmers and others involved in agriculture will start relying more on UPI for transactions.