Partho Dasgupta talks about the popularity of UPI and how its link with Pay Now is going to change cross-border financial transactions.
Payment methods in India have seen a newfound growth. Post Covid the growth trajectory of online payments has touched the skies. The ease of payment with just your mobile sitting in the comfort of your home while the rest of the world is standing in lines is what made UPI popular.
The National Payments Corporation of India (NPCI) created the real-time payment system known as UPI (Unified Payments Interface), which makes interbank transactions easier by instantaneously moving money between two bank accounts on a mobile platform.
Without entering any bank account information or login credentials, UPI enables customers to transfer money, pay bills, and perform other operations directly from their bank accounts. “Due to its ease of use, quickness, and security, UPI has gained enormous popularity in India. Users all around India can use it as a simple payment option because it is approved by practically all major banks and payment systems in India.” shares Partho Dasgupta Ex-CEO of BARC India and Presently Managing Partner, Thoth Advisors.
Recently the news of the linkage between UPI and Singaporean Link Pay made the news. Now Indian and Singaporean nationals can use UPI and Pay Now for their payment needs. The cost of transferring money internationally is significant and different charges are applied by different banks. However, with this linkage, the amount will be minimal.
As of now, Indian users can send up to INR 60,000 per day which is equivalent to around SGD 1,000. For the user’s convenience, the system will calculate and show the amount in both currencies at the moment of the transaction. In the beginning, outgoing remittances will be facilitated by the Indian Bank, Indian Overseas Bank, State Bank of India, and ICICI Bank, while incoming remittances will be facilitated by Axis Bank and DBS India.
“This move by the Prime Minister is going to set precedent for more such deals in the future. I believe that Fintech in India has now truly become global. Imagine how easy it is going to be for students to receive money! It is going to be extremely advantageous for small-scale businesses as well” shares Partho Dasgupta BARC Ex CEO.
To get an idea of the popularity and sheer scale of UPI, according to Inc.42.com, 2,348 UPI transitions are made each second in India! These numbers show how easily the Indian population has switched over to digital mode for their day to day payment needs. Long transactional time, paperwork, and just the sheer work that needs to be put in for transactions are something that every person wants to avoid. Even though the transaction limit is not high but it is a huge relief for individuals who want to make small value transactions.