Unified Payment Interface - Transforming Mobile Banking
BENGALURU: National Payment Corporation of India (NPCI) has launched Unified Payment Interface (UPI) on Monday, as a step towards cashless economy. UPI system has been launched with a view to provide hassle-free mobile payments to the customers, allowing bank account holders to transfer money and receive payments easily, reports The Times of India.
UPI connects several components of the payment system as it consolidates the services offered by the participating banks in a single mobile banking application. This app is the advanced version of Immediate Payment Service (IMPS) platform and will allow online payments round the clock. UPI is expected to make online transactions among different banks easier by using unique identity and mobile number without sharing other bank details and credit or debit cards. UPI app is also equipped with latest features to allow identification of receipts based on nicknames to avoid sharing of credentials.
The expected problems with UPI application is the non-clarity regarding who will perform functions like fraud analytics, merchant agreements, and dispute resolution for payments based on UPI system. Furthermore, it is also believed that UPI system will challenge the business of mobile wallet companies as their leverage of making payments easy would be shared by UPI.
UPI is presently in its phase one and available to a closed user segment that includes various banks and several technology providers that are responsible for developing UPI application. The app is expected to be available for public use very soon offering a wider range of banks added to the system.