Since its launch in 2016, India's Unified Payments Interface (UPI) has seen remarkable growth, with transaction volumes increasing by 43% in September 2024 compared to the previous year. The total transaction value surged to Rs 20.64 lakh crore, highlighting UPI's pivotal role in the country's digital payment ecosystem.
UPI, an open-ended system that integrates multiple bank accounts into a single mobile application, facilitates seamless peer-to-peer and merchant transactions. Operating 24/7, it has introduced features like offline payments and conversational payments, making it more accessible to users.
The National Payments Corporation of India (NPCI) is continually enhancing UPI with new offerings such as UPI Lite X, Hello! UPI, and UPI 123Pay, aimed at expanding its reach and usability. UPI Lite, for instance, allows users to make small-value transactions without entering a PIN, simplifying the payment process for all, especially the elderly.
UPI Lite X extends this convenience to offline transactions, enabling payments in areas with poor connectivity. This feature is particularly beneficial for users in remote locations, ensuring that digital transactions can occur without internet access.
Additionally, UPI 123Pay caters to feature phone users, allowing them to engage in digital payments with a transaction limit recently increased to Rs 10,000. Furthermore, the UPI Circle feature enables primary users to delegate payment authority to secondary users, facilitating easier management of finances within families.
As UPI continues to innovate and expand, it not only enhances the payment experience for millions but also drives the growth of digital finance in India, paving the way for future advancements in the fintech sector.