I hail from payment industry and its part of my job to know what is happening in the payment space. Within the payment industry there is a whole lot of noise around UPI, but surprisingly when I step out of office and try to discuss with my friends from other industry they have no clue about it. As a matter of fact I was surprised to know some banking people also had no clue about UPI. So in such circumstance I was wondering if this UPI will work, will it be popular and will it bring about a revolution in the payment industry. Well I can’t help but be positive about it, at least all the signs are pointing north.
To begin with we are a nation well connected with mobile phones, and by 2020 we will be having more than 500 million smart phone users. And by that time the comfort level of making payments through mobile phone across the pop strata would have increased immensely.
More bank accounts are being opened in India due to Pradhan Mantri Jan Dhan Yojana, but banking as such is in rural parts are in a dismal state. People have debit card but they don’t know where to use it, mostly it has become a source of removing cash from ATM. This dependency on cash is against the idea of digital money/ cashless economy.
In short it is very clear that there is a demand for a system like UPI and also that the infrastructure is in place. Moreover government and banks will stand to benefit a lot if the UPI systems becomes a success. Banks can save a lot because they don’t have to invest in real estate for ATMs and bank branches. Government will save huge amounts by not printing currency and will have less black money usage. So keeping the interests of various parties involved I see a lot of effort will be made to make UPI the biggest revolution in payment segment in India.