RBI lets credit cards and UPI apps dominate in India

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The Indian government is on a mission to make India a cashless economy by supporting digital payments. On June 8, 2022, the Reserve Bank of India made an announcement on linking credit cards to the Unified Payment System (UPI) network. The process will start with RuPay credit cards, then Visa and Mastercard loans. Currently, users perform UPI through their linked debit cards, but the addition of credit cards and the UPI linking network will soon bring new benefits to the public.

What are the benefits of the credit card and UPI linking offer?

UPI systems have long contributed to the digital economy. Now the ad provides more benefits to the audience.

  1. More variants: After credit cards and UPI linking, the user will have an additional payment alternative. UPI applications will see an increase in usage by customers.
  2. Local payment: RuPay, a local payment system, will enjoy increased usage as the announcement will begin implementation from RuPay credit cards. The Indian payment system will be widely used and recognized by the public. Users will feel proud to use their home system.
  3. More users: From 2019 to 2021, India has seen the value of UPI transactions increase by 4 times. An additional payment option will attract users preferring credit cards as a payment option and further increase transaction values.
  4. Pay later: Credit cards are post-paid cards that users can take advantage of to shop before reloading. With the addition of credit cards, users can use their credit card limits before submitting the invoice.

Timeline and statistics on UPI

UPI applications undoubtedly dominate the payment system. Here are the stats that prove the same from the official The source.

  • From April to June 2016, UPI statistics were zero. The government did not record any transaction figures and money during this period.
  • Despite zero registration until June 2016, until December 2016, 35 banks got involved in the UPI system, and the total value of debit and credit reached 700 crore.
  • In 2017 alone, the figure of money in transactions reached 2 times the previous year.
  • From 2018 to 2020, the total value of debit and credit added 1 crore Lakh in its accounts. Today, 207 banks are attached to UPI systems.
  • Now, in May 2022, there are 323 banks, live on the UPI system with a user volume of 5955.20 million and carrying the transaction value to 10,41,520 crores.

Top 3 Third-Party UPI Apps

Banks provide UPI functionality in their applications. However, a number of third-party apps have partnered with a number of banks to provide a seamless payment experience for users. They also offer regular rewards and offers to keep their customers engaged. Here are the top 3 third-party UPI apps.

Google Pay

Also known as Gpay, Google Pay is developed by Google and is used worldwide. The app offers many language variants such as Telugu, Tamil, Marathi, Bengali and Kannada. The app has partnered with ICICI, State Bank of India, Axis Bank and HDFC Bank to become one of the leading UPI third party apps.

Payment

One of the premier apps in the digital wallet industry, PayTm still tops the UPI payment grounds in India. You can also see merchants provided by Paytm with many providers to initiate UPI transfers smoothly.

Pay Samsung

Samsung is a leading electronics and gadget brand that transforms technology. Partner of Axis bank, Samsung pay operates under the pseudonym @pingpay and actively assists customers with UPI transfers

How does UPI benefit other mobile apps?

Digital payment becomes essential in mobile applications such as food delivery, e-commerce and betting. What advantage does the UPI system offer to other mobile applications?

  • 24×7: Unlike other payment methods, the UPI payment system is always active for users and suppliers. Even though the banks are closed, the UPI system continues to help users with payment transfers.
  • Flexible: There is no landline-mobile app to make a UPI payment. The public can use any application that supports UPI transfers to make the transactions immediately. So no matter what your user uses for payment, you can request money from them right from your app.
  • No charges: With UPI, you and your customers are not required to pay any fees when executing the transaction.
  • Secured: UPI transactions are secured with two-factor authentication, where users must enter their PIN each time they make a payment.

Wrap

UPI apps will dominate in India because of the Digital India mission and convenience enjoyed by users. The timeline above explains how users transition to most UPI applications. Third-party apps like Google Pay come across millions of users as their user base. The entrepreneurs plan to bring their own UPI app to be part of the dominance. The development process is complex since it involves the banks. It is therefore a good idea that you consult about your project a mobile app development agency

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