UPI Evolution – 4 Exciting Features Released This 2023

Image representing the UPI acronym

The National Payments Corporation of India (NPCI) strives to increase UPI transactions from 10 billion to 100 billion monthly. This goal comes shortly after UPI transactions in India reached an all-time high of 10 billion in August. To accomplish this aim, NPCI has introduced four new UPI products.

The National Payments Corporation of India has announced new UPI functionality.

UPI has recently introduced new features aimed at improving the accessibility of its digital services. These features include a credit limit, offline payments through UPI Lite X, a Tap & Pay function enabled by NFC technology, and conversational payments with Hello! UPI and casual bill payments through BillPay Connect.

The new releases were announced just one day after NPCI CEO Dilip Asbe stated at the Global Fintech Festival 2023 that UPI could expand up to 10 times and achieve a couple of billion daily transactions by 2030.

The 4 New UPI Features Explained

Credit Line on UPI

Using the “credit line on UPI” service, users can effortlessly pay for transactions via credit by linking pre-approved digital credit lines from banks. The payment process for this feature is identical to current UPI transactions, guaranteeing a seamless experience. NPCI assures that obtaining, connecting, and utilising credit lines will be much quicker using this service.

The Indian credit market is set to grow by the end of the decade, with the ‘credit line on UPI’ service benefiting banks and financial organisations. NPCI Chief Asbe believes “sachetization of credit” is necessary for complete digital onboarding. UPI is working with HDFC Bank and ICICI Bank to develop a service layer that allows real-time management and use of credit, with third-party payment processors assisting in the service’s initial launch.

UPI Lite X

NPCI has recently introduced UPI Lite X, a new feature that allows users to make offline payments. This innovative feature enables users to send and receive money even in places without internet connectivity, such as aircraft, underground metro stations, and other retail locations. UPI Lite, introduced by NPCI last year, allowed users to make small transactions without entering a PIN. NPCI has now enhanced the service by adding the new UPI Lite X feature.

UPI Tap & Pay

The NPCI’s UPI Tap & Pay and Lite X now allow NFC-based payments. Retailers can adopt this payment method more easily as Pine Labs and Paytm have updated their PoS systems to accept NFC payments.

Payments in Conversation – Hello! BillPay & UPI Connect

The National Payments Corporation of India (NPCI) has recently launched UPI and BillPay Connect, which enable conversational payments in both Hindi and English. BillPay is a useful tool that simplifies bill payments for people in India, and it can be accessed through chat apps or missed calls. NPCI also plans to introduce these services in other regional languages to make them more accessible.

In August, UPI transactions touched a new high.

E-wallet concept. Illustration of young people using mobile smartphone for online purchasing via ewallet. UPI 
Credit line

According to the NPCI, UPI is currently used by 350 million people. Last month, UPI broke a new record. The National Payments Corporation of India (NPCI) revealed that UPI achieved over 10 billion transactions for the first time in August. In that month, UPI processed transactions valued at 15.76 lakh crore.

The New UPI Features are Expected to Benefit Businesses in India. Below are Listed Several Advantages of These Features:

Credit Line on UPI:

This feature allows users to avail a credit line on UPI and pay later for their purchases. Small businesses and startups could benefit from this. With access to working capital, they can manage cash flow more efficiently, purchase goods, and cover operational expenses. It’s a crucial financial tool that could help them overcome cash flow challenges. Credit Line on UPI is powered by NPCI and partner banks.

Hello! UPI – Conversational Payments:

This feature enables users to make voice-based UPI payments through UPI apps, telecom calls, and IoT devices. By integrating conversational payment solutions into their apps or websites, they can offer a more user-friendly and personalised payment experience. This can lead to higher conversion rates and customer retention, which are critical for businesses. Hello! UPI is based on AI, machine learning, and natural language processing technologies.

BillPay Connect:

This feature allows users to pay their bills through UPI by scanning a QR code or entering a biller ID. It reduces administrative overhead, minimizes the risk of errors, and ensures timely payments. It also improves a business’s reputation and relationships with vendors and partners. This provides convenience for customers and ensures transparency in the payment process. BillPay Connect is integrated with Bharat BillPay, a centralised bill payment system.

UPI Tap & Pay / UPI Lite X:

NFC-enabled cards or phones allow for contactless UPI payments, which are faster and safer. For businesses, providing multiple payment options, including these features, can increase customer satisfaction and loyalty. Additionally, these technologies can support faster and contactless transactions, which are increasingly important in a post-pandemic world. UPI Tap & Pay / UPI Lite X are based on NFC technology and QR code standards.

Conclusion

The UPI ecosystem is evolving at an astonishing pace, introducing features like the UPI Credit Line, Conversational Payments, BillPay Connect, UPI Tap & Pay, and UPI Lite X. These innovations are not just shaping the future of digital finance; they are also making financial transactions more accessible and user-friendly than ever before.

As we embrace these developments, we embark on a journey toward greater financial freedom and convenience with UPI. The future of finance is here, and it’s right at your fingertips.

Unlock the potential of the UPI Credit Line, simplify your bill payments with BillPay Connect, and enjoy the convenience of UPI Tap & Pay/UPI Lite X. Your financial freedom awaits!

FAQ

1. What is a UPI Credit Line?

Discover UPI Credit Line, offering direct access to short-term credit within UPI, providing enhanced financial flexibility for diverse needs.

2. How do I apply for a UPI Credit Line?

To apply for a UPI Credit Line, open your UPI app, navigate to the Credit Line section, and follow the application process. Approvals are often quick, making it a hassle-free experience.

3. What can I use a UPI Credit Line for?

You can use a UPI Credit Line for various expenses, including unexpected medical bills, bridging financial gaps between paychecks, or covering any temporary financial needs.

4. Are there any benefits to using a UPI Credit Line?

Several benefits include enhanced financial flexibility, a quick and easy application process, and customised credit limits tailored to your financial profile.

5. Is the UPI Credit Line suitable for business owners?

Yes, business owners can benefit from the UPI Credit Line to manage cash flow efficiently and cover unforeseen expenses during their operations.

6. Can freelancers and gig workers use the UPI Credit Line?

Absolutely. Freelancers and gig workers, who often have irregular incomes, can utilise the UPI Credit Line to bridge financial gaps during periods of fluctuating cash flow.

7. What are Conversational Payments with “Hello! UPI”?

Conversational Payments with “Hello! UPI” enable users to initiate transactions using natural language commands. It simplifies the payment process and makes it more intuitive.

8. How does BillPay Connect work?

BillPay Connect centralises bill payments: link utilities, subscriptions, and service bills to UPI, view in one place, set reminders, and enable auto-pay.

9. What is UPI Tap & Pay?

UPI Tap & Pay allows contactless payments with a simple tap of your smartphone or wearable device. It combines the security of UPI with the convenience of contactless transactions.

10. Who can benefit from UPI Lite X?

UPI Lite X is designed for limited storage & slow internet. Streamlined, efficient payments for all, even basic smartphones.

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