The much awaited Unified Payments Interface (UPI) from NPCI was launched by the government on April 11.
As per MD, NPCI 29 banks have signed up to be part of the UPI and will be part of the system by Jun 29. Eventually all scheduled banks will become part of it, either as a regulatory push or by just responding to market needs. The architecture of UPI allows multiple PSPs (Payment System Players) to connect to UPI and access NACH, IMPS, AEPS, Rupay, NFS etc. PSPs, by definition include Bank, Payment Bank, PPI, or any other RBI regulated entity that is allowed to acquire customers and provide payment (credit/debit) services to individuals or entities. This definition also rolls in the existing "Payment Gateways".
Accordingly, larger entities like banks will be able to service customers and small merchants acquired by PPIs, and vice versa, thus expanding the choice of payments offered to the customer at a merchant. Ability to have a virtual address for both payer and payee can allow the anonymity of cash to exist, at least to the visibility of the merchant.
A lot of action is expected in the last mile space both to the consumer and businesses, as merchant acquisition is stepped up. This is because anyone who acquires the merchant basically acquires them for the entire issuer community of networks, banks, PPIs, etc and not just for their own network. Thus a PayTM acquired merchant will be able to accept Rupay, Mobikwik, Airtel Money or any other payment instrument and vice-versa. MDR is expected to be lower than what is prevalent in the market.
Good times lie ahead for innovations to benefit the customer and merchant alike.
As per MD, NPCI 29 banks have signed up to be part of the UPI and will be part of the system by Jun 29. Eventually all scheduled banks will become part of it, either as a regulatory push or by just responding to market needs. The architecture of UPI allows multiple PSPs (Payment System Players) to connect to UPI and access NACH, IMPS, AEPS, Rupay, NFS etc. PSPs, by definition include Bank, Payment Bank, PPI, or any other RBI regulated entity that is allowed to acquire customers and provide payment (credit/debit) services to individuals or entities. This definition also rolls in the existing "Payment Gateways".
Accordingly, larger entities like banks will be able to service customers and small merchants acquired by PPIs, and vice versa, thus expanding the choice of payments offered to the customer at a merchant. Ability to have a virtual address for both payer and payee can allow the anonymity of cash to exist, at least to the visibility of the merchant.
A lot of action is expected in the last mile space both to the consumer and businesses, as merchant acquisition is stepped up. This is because anyone who acquires the merchant basically acquires them for the entire issuer community of networks, banks, PPIs, etc and not just for their own network. Thus a PayTM acquired merchant will be able to accept Rupay, Mobikwik, Airtel Money or any other payment instrument and vice-versa. MDR is expected to be lower than what is prevalent in the market.
Good times lie ahead for innovations to benefit the customer and merchant alike.
