Launched in 2016, Unified Payments Interface (UPI) is an instant money transfer program created by the National Payments Corporation of India (NPCI).

Since it was launched, the programme has helped to facilitate online payments across different sectors in the Indian business ecosystem. It has grown so big in the country and is now set to break into the global market.

During the Digital India Week 2022 which was held from July 4 to July 9, IT Minister Ashwini Vaishnaq stated that India was discussing UPI with 30 other nations, and three countries have already signed MOUs according.

He further shared an estimate of the number of UPI transactions during the summit - about 6 Bn transactions valued around 1NR 10 Lakh Cr were carried out in May and June.

The Prime Minister, Narendra Modi, inaugurated the session during the summit. In his final remarks, he discussed how UPI has transcended barriers and has been a source of empowerment for all citizens, proving that programs created by Digital India are secure, scalable, and democratic.

He further mentioned that UPI currently attracts the whole world, and in fact, it is loved by everyone, including financial institutions like the World Bank. He also emphasized how about 130k UPI transactions are carried out every minute.
According to a 2021 report by NPCI, 39 billion UPI transactions were carried out in India during the year. The total worth of money transferred using the payment system was around $940 billion, which is around 31% of India's GDP.

Popular Uses of UPI

Being an instant payment service, UPI has no limits. It facilitates the transfer of funds from one bank account to another across a single window. It is simple, instantaneous, free of charge, and also easy to use on mobile devices. Currently, you can transfer as much as INR 1 lakh via UPI in a single transaction.

The biggest advantage of the payment system is that it enhances interbank transactions through a single app. You can access different bank accounts through the app, so you won't have to download multiple apps.

UPI supports utility bill payments, QR codes (scan and pay), as well as over the counter payments. You can use it to order products from different online outlets, whether pharmacies, grocery stores, books, computers, or whatever is available online.

One very popular sector where UPI is mostly preferred is online gaming. You can use it to pay at an online casino in India for real money or an online cricket betting site.

Countries accepting payment easily

Earlier in 2022, NPCI International Payments Limited (NIPL - the international arm of NPCI), partnered with Gateway Payments Service Pvt Ltd, Nepal authorized payment service operators and Manam Infotech Private Limited to establish UPI in Nepal. This partnership was done to enhance people in Nepal conduct Merchant payments and Person to Person transactions. As a result, Nepal becomes the first nation outside India to accept UPI as a payment service.

Also, in June 2022, NIPL signed an MoU with the Lyra Network of France to integrate Rupay cards and UPI across the country. Apart from Nepal, NIPL has also been linked with several economic institutions in the UAE, Japan, Singapore, and China. At the moment, the NPCI International body is working on making UPI a channel for cross-border financial remittances.

CEO of NIPL, Ritesh Shukla, mentioned how the organization is committed to transforming the online payments ecosystem by promoting its robust payments program to the global market and partnering with local payment service providers in different countries.

"We are confident that this initiative will stand as a testimony to NIPL's technological capabilities and vision of scaling our unique offerings globally," he said.

Conclusion

UPI is currently one of the most successful instant payment systems in the world. It provides simplicity, safety, and security for both Person to Person and Person to Merchant transactions in India. With the huge rate of success the payment system has had in India, we expect a seamless replication of digital payments revolution in other countries that accept UPI.