The National Payments Incorporation of India is launching whole new UPI features to help businesses and individuals with better transactions.
Why UPI is the preferred mode of payment in a pandemic
No-touch payments are the ‘new normal’. UPI is the most preferred online payment mode, given how transactions stand at 1.23 billion in May 2020. UPI payments saw a hike by 23% between April-May 2020.
Since COVID struck India, The Government has pushed for contactless payments for all kinds of online transactions. UPI 2.0 allows you to keep your wallet at home, and offers features like QR code, sharing UPI ID, linking UPI with phone number and unlimited transactions.
The new features (UPI 3.0 – ?) could bring about changes small businesses have been asking for, for quite some time now, such as:
Linking UPI with digital wallets
According to a Livemint news release, NPCI is in the process of talking to banks and e-wallet companies to integrate both UPI and digital wallets together. Basically, UPI will bow be available on all e-wallets.
That way, customers can transfer money from one wallet to another, and transfer money to bank accounts via UPI.
Integrating UPI with WhatsApp
The WhatsApp Pay feature, a UPI-based payment mode, is currently awaiting a Supreme Court verdict to launch the payment service for Indians who use the messenger service.
According to our COO, WhatsApp Pay could help onboard the next 100 million users for UPI must faster!
Offline Payments with NFC
Soon, businesses can accept online payments via UPI without internet connectivity. This feature will allow payments via UPI using Near-field communication (NFC) between two mobile devices.
This works in favour of stores with PoS machines that glitch due to poor connectivity. However, it is possible only once they incorporate NFC in the devices.
Autopay for recurring payments
Launched recently, small businesses that run subscription-based models, contractual payments with vendors can opt for recurring payments via UPI. Just like a bank account, banks and companies can deduct a fixed monthly amount from a customers account via UPI.
As per RBI regulations, amounts up to ₹2,000 do not need a PIN to authorise the debit. You can cancel recurring payments anytime.
“ UPI autopay is far simpler and cheaper compared with the existing methods” – Akash Gehani, COO, Instamojo
Recurring payments on Instamojo
You can request payments in bulk via any mode using Instamojo. If you use Instamojo to collect payments, you can also enable recurring payments via credit card or UPI payments on Instamojo.