UPI, laucnhed by NPCI, is a mobile application that helps quick transfer of money through a mobile device round the clock. UPI payments are extremely beneficial because they're P2P and do not require a digital wallet. Payment railroad is used to describe the pathways through which digital payments move which in the case of UPI is managed by NPCI. It will not longer be a messenger, it can be used to transfer money to friends and families directly to their bank accounts. Hota further adds that the e-commerce giant will not develop its own app, but will instead use a pay button for UPI on its portal.
According to Hota, there are 50 banks who are members of UPI and out of them, 37 have developed their own UPI applications. Around the same time, Facebook also announced peer-to-peer payments through Messenger.
He also said that Facebook and WhatsApp too are in discussion with NPCI regarding the launch of their UPI payment services in the country. Earlier in April 2017, a report from The Ken had claimed that WhatsApp might be working on launching mobile payments within the next six months. "Amazon was now testing for the same, while Uber is still conducting the process", Hota told reporters.
UPI-enabled apps allow transactions to be done through any smart phone using VPA (Virtual Payment Address).
"As a technology-driven company, we applaud the potential and impact that fin-tech innovations like UPI can make".
If transactions do not accelerate in the next few months and the banks do not market the product, there is a real danger that the government's annual goal will be missed by a wide margin. The world's largest cross-platform instant messaging app, which has more than 200 million active users in India, is expected to launch its service later this year. "It is the future of Indian payments and we are proud to be a partner in this monumental mission of the government to facilitate digital payments led society".
As per Hota, last year, the volume of digital payments was 9.2 Bn of which 3.5 Bn had been contributed by the NPCI. It is now supporting over 30 banks. This year, "we are aiming to contribute about 11 billion digital transactions", he said.