Did you hear? NPCI, the National Payments Corporation of India is all set to launch a brand new version of UPI – Unified Payments Interface. Here is everything you need to know.
According to the NPCI, UPI transactions rose by 246 million in June 2018, as compared to 189 million in May 2018. At Instamojo, we saw a 20% growth in UPI transactions in June as compared to May. This definitely proves how fast UPI is catching up in the market.
What is UPI?
UPI (Unified Payments Interface), is a payment mode built on IMPS. It is like an email ID for your bank account. Your Virtual Payment Address (VPA) looks something like example@icici.
You can use UPI on any banking app or the BHIM App – NPCI’s official UPI app. UPI has numerous features, which are also customer-friendly and secure, to ensure safe transactions.
Existing Features of UPI 1.0:
- Instant money transfers with round the clock services via a simple mobile app.
- A single app which can manage multiple payments from multiple bank accounts.
- “Single Click 2 Factor Authentication” which ensure safe and secure transactions.
- No need for providing card numbers, IFSC codes or account numbers for transactions.
- The app helps you split bills with friends, pay utility bills and even set reminders for payments.
What is UPI 2.0?
UPI 2.0 will be a new and improved version with multiple added features and benefits. The new version aims at providing a safer and secure payment experience with easier authentication processes.
We looked around the internet for all the new upcoming features and found some exciting ones that might interest you.
Upcoming Features of UPI 2.0:
Increased transactional limits:
The transactional limits are expected to go up to Rs. 2 Lakh. Today, you can only send up to Rs.1 Lakh via UPI.
Overdraft Support Systems:
While the UPI 1.0 allowed users to only link their savings account to the app, UPI 2.0 will allow users to pay to a current account or merchant account. What’s more? It also comes with the added benefit of an overdraft support. This is great for merchants, as they can now use this feature to take credit using an OD account, and then continue payments through UPI.
Amount Blocking Option:
With the pay-as-you-use option, this feature will revolutionize the payment scenario in the country. The feature will allow merchants or sellers to block defined amounts of their customer’s money, enabling a deduction everytime their product or service is used.
Invoice sending features:
A seller may be able to generate invoices directly using the UPI app. To add to the buyer experience, the invoice generation on purchases help build a more authentic outlook towards transactions.
Secure QR-based payments:
With a QR code, payments will include a certificate ensuring the money is also transferred to the right account number. This plays as an added layer of security to check fraudulent transactions and interceptions during payments.
QR payments help protect sensitive information such as account details, pin codes and much more.
Currently, sound-based payment plugins are being tested with 3 companies namely, PhonePe, ToneTag, and UltraCash. With this, you can now make payments with literally the sound of your voice.
UPI 2.0 will allow you to set automatic payment mandates. Never miss deadlines to pay up EMIs or your insurance premiums.
Mobile number error solution:
Couldn’t use UPI because you have a different phone number linked to your bank account? This problem has now been addressed, enabling you to make payments, irrespective of the number linked to your bank account.
There is a marked increase in companies integrating UPI into their apps to make fast, easy and secure payments. You can learn more about 5 Things You Can Do With Your UPI Virtual Payment Address.
With apps like Google Tez and many more helping push the UPI agenda, it is safe to say that UPI is empowering digital India with a keen focus on merchant experience and recurring payments.
It also promotes a cashless economy and enables responsible fiscal behavior making it easy for a common man to sign up to saving accounts and insurance schemes.
The added features will definitely make it India’s preferred payment mode. However, there are some proposed features that could be risky in UPI 2.0.
One-time authorization for payments?
UPI 2.0 may make all transactions one-factor authorization, which means authorizing payments via the bank is only needed once while registering on the app. After this, all further payments (online and offline) will be deducted directly from your bank account. This could be a security vulnerability.
Why worry about payments security when you can transact with Instamojo. All your transactions are PCI-DSS compliant and are encrypted for safety. Engage in seamless, secure payments, via Instamojo and collect on-demand payments over multiple channels and all payment modes.