Portal de Periódicos da CAPES

Unified Payment Interface (Upi) a Catalyst Tool Supporting Digitalization – Utility, Prospects A Issues

2017; RELX Group (Netherlands); Linguagem: Inglês

1556-5068

Abhijeet Chaterji, Roshna Thomas,

FinTech, Crowdfunding, Digital Finance

The Unified Payment Interface (UPI) launched by the national payment corporation of India (NCPI) is one of the most brilliant, modernized and cost effective innovation that is capable of making a remarkable mark upon Indian economy which has already taken its strides in the marathon towards digitilaization. This new interface is designed to enable bank account holders to send and receive money from their Smartphone with a single identifier i.e either a Aadhar number, mobile number, virtual payment address or a QR code without entering any bank account information or details.UPI allows the customer to make transactions both big and small instantly and that too free of cost. Though UPI is loaded with clear vision and superior objectives from the government and the NCPI it is still far from adoption as there are technical, psychological and fundamental factors responsible The current paper explores and discusses various dimension of UPI ranging from its concept, formation, utility, challenges, factors responsible for its adoption and its impact upon the stakeholders of its ecosystem. The study concludes that UPI is a tool with compatible features that can make monetary transactions easy and affordable to the customers though it is difficult to sideline the challenges. A strong Aadhar platform (UID) combined with statistics for the country pertaining to increased financial inclusion, Smartphone adoption and telecom subscription indicate positive prospects for UPI whereas competition from mobile wallets and possible cases of failure from banks to overcome technical errors especially relating to the front-end platform designed by them may negatively impact the scope of this innovative payment tool.