National Payments Corporation of India has launched a new electronic fund transfer system called "Unified Payments Interface (UPI)" to integrate existing mobile wallet services such as Paytm, Mobikwik, and FreeCharge. The UPI, which went live on Monday, enables customers to instantly transfer funds across several banks using a single user-ID and password.
Mobile banking users no longer have to store their credentials on multiple electronic wallets while using UPI, as a single mobile banking application (app) takes control of the money sent or received with the same interface. The UPI enables quick online bookings including cab rides, movie tickets, and paying up utility bills.
The existing mobile wallet companies suggest that UPI will only make online payments easier for consumers without actually affecting their business in the short term.
"UPI is a layer of architecture built on top of standards like the Immediate Payment Service (IMPS) platform, which enables transactions using unique identification and mobile phone number without sharing any other bank details," explains a leading newspaper.
The user-friendly nature of UPI is expected to revolutionize the way Indians make cashless payments. India's leading online retailer Flipkart has recently purchased PhonePe, a UPI-based payments company.
Flipkart's CEO Binny Bansal suggests delayed acceptance of digital payment services could indeed hinder widespread adoption of online shopping in the country.
The simplified UPI service removes the need to share personal information such as bank account numbers, mobile numbers and email id's, and thereby making every transaction more secure.
Last Updated 7:02 PM IST