Status of Indian Payment System UPI www.deekpay.com

## UPI India: a payments revolution sweeping the world The Unified Payments Interface (UPI) in India is changing the way people pay at an unprecedented rate, a payments revolution that has swept India and set its sights on the world. The Rise of UPI: From Street Vendors to Millions of Merchants In just six years, UPI has grown from a nascent payment system to become the mainstay of retail payments in India, accounting for 16% of total payments. almost everyone, from street vendors in Mumbai to merchants in bustling markets, accepts UPI payments. According to consulting firm BCG, more than 30 million merchants now use UPI QR codes, compared to just 6 million traditional POS machines. The UPI Advantage: Speed, Convenience and Low Costs UPI's success is due to its speed, convenience and low cost. It enables instant money transfers and processes 220 million transactions per day, with plans to increase that volume to 1 billion. In contrast, traditional NEFT transfers take up to half an hour to complete, and UPI's zero merchant discount rate (MDR) and cashback policies offered by third-party platforms have attracted a large number of users. UPI's Future: Global Expansion to Challenge Cash Dominance UPI is expanding far beyond India and is reaching out globally. NIPL, a wholly owned subsidiary of NPCI, is responsible for taking UPI to international markets. Currently, countries such as Nepal, Bhutan, the UK, and the UAE are already using UPI, and Southeast Asian countries are planning to integrate their own QR code payment systems to facilitate UPI's global expansion. UPI's Challenges: MDR, Fraud, Cash Dominance There are also challenges to UPI's growth. As UPI becomes more widespread, there is a growing need for MDR, which requires balancing the costs to stakeholders with the user experience. In addition, UPI needs to deal with fraud issues and competition from cash payments. UPI's Impact on the Future: Disrupting Traditional Payments and Reshaping the Financial Landscape The emergence of UPI is disrupting traditional payment methods and bringing profound changes to the financial landscape. In the future, UPI will integrate with other payment methods such as credit cards and remittances, and could become a powerful force challenging cash payments. As UPI continues to evolve, this payment revolution will continue to change people's lives and reshape the financial landscape.