An Introduction to UPI, India's Local Payment Channel: paytm, India's Three-Party Payments

Based on data from the Reserve Bank of India (RBI), digital payments ecosystem UPI has experienced a compound annual growth rate (CAGR) of 55.11 TP3T over the last five years (2016-2020.) Currently, 207 banks in India are integrated with UPI, with 2.3 billion transactions per month, and a cumulative value of 4,161.76 billion Indian rupees (approx. USD 58 billion), making it the leading online payment system in the country.

The Unified Payments Interface (UPI), developed by National Payments Corporation India, is a payment system that integrates multiple bank accounts into a single mobile application. It offers multiple banking functions within the app, including fund transfers and merchant payments.UPI also supports peer-to-peer payment requests, enabling users to make payment arrangements anytime, anywhere.

1. Users can arrange transactions 24 hours a day, 365 days a year from their mobile devices.

2. Users can access multiple bank accounts through a single application.

3. Multi-factor authentication ensures compliance and high security while providing the power of one-click payments.

4. Pushing and retrieving virtual addresses improves security by eliminating the need for customers to enter information such as card numbers, account details, IFSC codes and so on.

5. Users can share bills with others.

6. UPI is the perfect solution to the dilemma of cash delivery, finding an ATM or providing the exact amount.

7. Merchants can complete transactions within a single application or programme.

8. UPI supports utility bill payments, over-the-counter payments, and barcode payments (scanned payments).

9. UPI can be used for donations, receipts and expenditures, and its functionality is constantly expanding.

The latest data from UPI's official website shows that 214 banks have integrated with UPI and 20 third-party payment apps have access.

Banks that integrate with UPI include:

- State Bank of India

-Punjab National Bank

- ICICI Bank

- Canara Bank

- Bank of India

- Bank of India

- Union Bank of India

- Indian Overseas Bank

- HDFC Bank

- and 214 other banks

Third party applications that integrate with UPI include:

Security and central bank supervision

An important way for India to achieve a cashless society, UPI was launched by the government-backed National Payments Corporation of India and is regulated by the Reserve Bank of India to ensure a high level of security.

Broad product coverage and scalability

As an open platform, UPI is able to continually integrate new banks and third-party payment processes, providing strong scalability and broad coverage.

High transaction volume and user base

UPI is now the most transacted online payment method in India with over 100 million active users and over 2.3 billion transactions per month and still growing rapidly.

How to integrate UPI

Currently, UPI can be integrated through third-party gateways (contact PayerMax for details). These gateways integrate popular local payment methods, solving all payment challenges at once and providing a convenient and simple payment process.

UPI integrated payment process