In a significant move to revolutionise the digital payment landscape in India, the National Payments Corporation of India (NPCI) introduced a range of innovative features for the Unified Payments Interface (UPI) at the Global Fintech Fest 2023. These new additions promise to enhance the convenience, accessibility, and versatility of digital transactions for millions of users across the country.
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Here's a look at new UPI features and how can one use them:
Instant Credit via UPI
The most groundbreaking addition is the "Instant Credit via UPI" feature. This offering will allow individuals to access pre-approved credit lines from their banks through UPI. In essence, it will eliminate the need for a traditional credit card. Users will be able to quickly and easily avail credit facilities by linking their UPI accounts to scheduled commercial banks. This development has far-reaching implications, particularly for those who were previously excluded from credit card-based transactions.
Traditionally, credit cards have been the primary means of accessing digital credit. However, the latest announcement empowers banks to offer credit products that emulate credit card offerings, all without the need for physical credit cards or the expensive infrastructure associated with them, such as POS/swipe machines.
This move is especially significant because, while credit cards were previously allowed on UPI rails, this was limited to the RuPay settlement system, which was not widely adopted by private sector banks. As most credit cards from these banks are operated on Visa and Mastercard settlement systems, the previous allowance for RuPay credit cards had minimal impact.
UPI Lite X for offline payments
UPI Lite X is designed to bring digital payments to even the most remote locations. It will enable users to send and receive money through UPI without needing an internet connection. This functionality will open up new use cases, such as making payments on flights, in underground metro stations, and at various merchant locations. With UPI Lite X, financial transactions will no longer be bound by connectivity constraints.
UPI Tap & Pay
UPI Tap & Pay will introduce near field communication (NFC)-based payments. Users will be able to make payments simply by tapping their devices on NFC-enabled QR codes at merchant locations. This contactless payment method will enhance security and ease of use. It aligns with the growing trend of adopting QR code and NFC technology for seamless transactions.
Hello! UPI – Conversational Payments
"Hello! UPI" represents a major leap in user experience. This feature will enable voice-enabled UPI payments through UPI apps, telecom calls, and IoT devices. Users will be able to perform transactions in Hindi, English, and soon in multiple regional languages by giving voice commands and confirming with a UPI PIN. It's a step towards making digital payments more accessible and user-friendly.
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