UPI 2.0: What new features are on offer

MUMBAI: The National Payments Corporation of India (NPCI) is prone to launch UPI (Unified Payments Interface) 2.0 — the second one version of the account-to-account cash switch platform that was once launched in August 2016 — this week. While the current UPI is structured largely for peer-to-peer payments, the revised version may have many options that will promote service provider transactions.

One key characteristic is that transaction limits in UPI 2.0 are set to double to Rs 2 lakh from the earlier version. Also, payments can quickly be made from an overdraft account as towards just a cash account at this time. Under the new version, traders can block a specific amount in a buyer’s account as safety and debit it at a long term date without further authentication. According to banks, the power might be useful in transactions comparable to reserving hotel rooms and airline tickets.

Although the RBI had proposed that e-wallets might be allowed to be a part of this platform, UPI 2.0 at this time allows only bank accounts for use for fee transactions. The previous proposal was once to facilitate biometric payments the usage of the Aadhaar database below UPI 2.0. However, that's not happening now.

Merchants are prone to welcome UPI 2.0 as it's going to permit them so as to add an invoice to a accumulate request. QR-based UPI payments will become more safe because the code will now include a certificates, which is able to guarantee the sender that the money goes into the right account.

Paytm senior VP Deepak Abbott said, “Almost 99 consistent with cent of the 8 million traders accepting Paytm have a full-KYC account and are registered as traders with Paytm.” The increase in limits and the power to hyperlink overdraft accounts will enable UPI for extraordinarily massive transactions, he added. “At present our transaction price tag measurement is moderately under our opponents as we now have been strongly supporting Paytm for low-value payments,” said Abbott.

The 2d segment is coming at a time when UPI transactions are appearing record expansion, driven by private gamers like Paytm and Google Tez. In the month of June, UPI transactions hit nearly 25 crore, an increase of 30 consistent with cent over 19 crore in May 2018. The cost of these transactions grew 22 consistent with cent in June 2018 from Rs 33,288 crore in March 2018.

Among the apps, Paytm accounted for 38 consistent with cent of total transactions adopted by Google Tez at 22 consistent with cent and PhonePe at 19 consistent with cent. Bhim, the one-time marketplace leader promoted by NPCI, has slipped to fourth position with just a 7 consistent with cent proportion.

UPI 2.0: What new features are on offer UPI 2.0: What new features are on offer Reviewed by Kailash on July 11, 2018 Rating: 5
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