April 19th, 2023: This city leads the transition from offline to online transactions. Any guesses? Which cities followed closely? Read the ReferencePepper!
UPI-based digital payments reached a record high in 2022. In 2022, popular payment methods like UPI and cards recorded digital transactions totaling more than 149.5 lakh crore.
According to data given by Worldline, a French provider of payment and transactional services, Bengaluru was at the top of the list of Indian cities with the largest number of digital transactions in 2022, accounting for 29 million transactions (2.9 crore transactions) totaling Rs 6,500 crore.
With a 70% rise in transactions to 74 billion and a 54% increase in value to Rs 126 trillion, India's Unified Payments Interface (UPI), the country's leading payment platform, continued to be the key platform for digital payments in 2022.
New Delhi came in second place with 19.6 million transactions totaling Rs 5,000 crore, followed by Mumbai with 18.7 million transactions totaling Rs 4,950 crore, Pune with 15 million transactions totaling Rs 3,280 crore, and Chennai with 14.3 million transactions totaling Rs 3,550 crore.
Worldline India CEO Ramesh Narasimhan said, “I am amazed every day to see the incredible progress we have made in the digital payments ecosystem over the past few years. The adoption of multiple payment solutions is a boon in our journey to realise the dream of a less-cash India.”
The Worldline report also indicated that in the end of 2022, 1.02 billion debit and credit cards were in circulation.
What is UPI?
UPI stands for Unified Payment Interface. It is an application for smartphones that allows users to make monetary transactions between various bank accounts.
It works on a single-window payment mode over the mobile. It was developed by the National Payments Corporation of India and removes the involvement of physically attending the bank to make sensitive transactions.
UPI works on a real-time payment system and is enabled to work with interbank transfers through a single click. The User Interface is monitored by the RBI.
Why is UPI important?
Well, it is a cost-effective, secured, reliable, open-source, and effective platform to make money transactions over. This will allow users to generate transactions virtually right from the app.
So, even if the system of the payment gateway gets hacked, your information will stay safe.
How does UPI work?
| UPI switch handles the authentication and communication of transactions that occur in the banks |
| From crediting to debiting. A switch can be anything, like a card machine, or an OTP |
| You can choose any PSP3 to work with |
| Your identity over the PSP3 is managed by the banks themselves, which makes you completely safe, as this information stands decrypted |
| To reduce failure in the system, we have on-borders |
| When you sign up for a new wallet or UPI the application developers integrate you into existing payment cycles |
| This integration is enabled innovatively to maintain authentication. This is where your consent over digital platforms comes to play |
How to start using UPI payments as a customer for Smart Phones?
This is a typical process common for most UPI apps
| STEP 1 | Go to play store/ app store and install any UPI app/PSP available |
| STEP 2 | Open the app and enter your phone number which is linked to you bank account you want to use |
| STEP 3 | The app would ask you for necessary permissions, which you would need to allow |
| STEP 4 | Wait for OTP - enter OTP - tap on NEXT |
| STEP 5 | Set your UPI pin |
| STEP 5 | Once you enter your UPI, you will get your UPI ID/ VPA (Virtual Payment Address) |
| STEP 6 | You're all set |
What arePSP3s?
PSP3: Payment Support Providers, identified by the RBI that maintain virtual addresses and keep identities safe and authentic for the banks. To help readers relate to PSPs, out of many in India, we have listed a few popular ones
How is your identity kept safe?
UIDAI is the Unique Identification Authority of India that gives out an identity over the digital platform to Indian users and maintains integrity!
So don’t you worry, you are in safe hands.
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