India’s UPI stands out as a leading contender on the global stage in digital payment systems

Groundbreaking Indian innovation that’s making waves worldwide – the Unified Payments Interface (UPI). Developed by the National Payments Corporation of India (NPCI) in 2016, UPI has revolutionized the way payments are made. With $1.7 trillion worth transactions in fiscal year 2023. UPI has become a global sensation, revolutionizing digital transactions and setting new standards for convenience, security, and inclusivity.

With UPI, making payments is as easy as sending a text message on your smartphone, thanks to its user-friendly Virtual Payment Address (VPA) feature. Say goodbye to sharing sensitive bank details – UPI ensures security and simplicity every step of the way. From street vendors to shopping malls, UPI is the go-to payment method, driving India’s digital transformation. In fact, India leads the world in digital transactions, commanding a staggering 46% share as of 2022.

In volume terms, UPI has grown 59.2 percent year-on-year to ₹9.33 billion in June 2023 and 45.5 percent in value terms to ₹14,75,464 crore, from a year ago. This has expanded to Rs 9.96 billion in volume terms and ₹15,33,536.44 crore in value terms, for July.

The Indian digital payments market is expected to touch 411 billion transactions in FY27, from 103 billion in FY23, PwC said in a May 2023 report, with the industry expanding steadily in the last five years at a CAGR of 50 percent transaction, volume-wise and 60 percent transaction, value-wise respectively.

The recent rollout of India’s Unified Payments Interface (UPI) at the Eiffel Tower in France signifies a significant advancement in the worldwide adoption of digital payment systems, offering particular advantages to Indian travelers who can now transact in rupees while exploring this renowned attraction. Visitors to the Eiffel Tower in Paris can now conveniently make reservations using India’s UPI platform. Moreover, UPI has already gained acceptance in the UK, Bhutan, UAE, Oman, and Southeast Asia.

The introduction of UPI in France signals a significant development for the fintech sector, highlighting the necessity for adaptable and scalable systems that comply with diverse regulatory and economic landscapes. Through a strategic partnership with the French digital payment platform Lyra, UPI has expanded its presence into Europe, facilitating smooth and hassle-free payment transactions for Indian tourists, a sizable demographic of travelers in the region.

The integration of RuPay credit cards with UPI marks a revolutionary step in the digital payments landscape, combining the advantages of both credit cards and UPI for consumers. By taking advantage of the short-term credit facility offered by credit cards for UPI transactions, cardholders can now initiate payments using their credit lines instead of drawing from their savings accounts.

UPI’s remarkable success story exemplifies India’s ability to innovate and adapt to evolving technological trends, positioning itself as a frontrunner in the global fintech landscape.

Reference: livemint.com | forbesindia.com | pib.gov.in

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