.jpeg "Featured Image")
Unified Payments Interface (UPI) has become the dominant digital payment method in India. Since its inception in 2016, it has revolutionized how people make transactions. UPI allows users to transfer money in seconds using their mobile phones, rapidly gaining acceptance across various sectors, from local shops to large retail outlets. This article outlines the significant updates and features that have shaped UPI, making everyday life easier for consumers.
UPI was launched in India in 2016 by NPCI. The primary goal was to create a platform that linked different banks, enabling transactions without needing IFSC codes or account numbers. Money transfers became possible using just a mobile number and UPI ID.
The introduction of the BHIM app and QR codes in 2017-18 further simplified UPI usage. Merchants began displaying QR codes, allowing instant transactions through mobile number input or scanning. This increased the ease of digital payments.
UPI AutoPay and recurring payments were introduced in 2019, streamlining payments for services like Netflix subscriptions, EMI, and insurance premiums. Users could authorize automatic monthly payments, eliminating the need for repeated OTP entries and simplifying digital service access.
During the 2020 COVID-19 lockdown, the demand for cashless payments surged, making UPI a common payment method everywhere. UPI transactions surpassed 2 billion for the first time in that year.
In 2021, UPI 123PAY was launched, enabling UPI payments without internet access. UPI linking with countries like Bhutan, Nepal, and Singapore expanded UPI’s reach. This helped the elderly and those in rural areas, and made international payments easier.
In 2022, the RBI announced that UPI payments could be made using RuPay credit cards, broadening its scope beyond bank accounts. This combination of cards and UPI facilitated larger transactions.
AI-based fraud detection systems were integrated into UPI in 2023, enhancing security and fraud control. Users gained increased protection against fraudulent transactions.
In 2024, UPI Lite and Tap & Pay features were introduced. UPI Lite enabled small payments (up to ₹500) without PINs, and NFC technology facilitated Tap & Pay services. These features eliminated the need for QR scans, allowing payments with a simple device touch.
In 2025, biometric verification will be introduced, allowing users to pay using face ID or iris scans, eliminating the need to enter a PIN. NPCI is actively working on this system, which is currently in the testing phase and may be rolled out across banks and apps in the coming months.
