UPI has recorded massive success by recording Rs 25 crore transactions in June 2018 itself – a 30 per cent growth from Rs 19 crore in May 2018
The National Payments Corporation of India (NPCI) is expected to launch the second version of the Unified Payments Interface (UPI) 2.0 this week. The account-to-account transfer system that kicked off in August 2016 is expected to arrive with many new features precisely to promote merchant transactions.
Transaction limit to be Rs 2 lakh and transfer from overdraft account will be possible
An important feature of UPI 2.0 will be the increase of transaction limits by two-fold and make it Rs 2 lakh. Other new features will be the possibility of making payments out of an overdraft account instead of the current bank account only.
Furthermore, merchants can now add a certain amount and block the same in a customer’s account and debit it instead at a convenient and future date with the need for any further authentication. Now, merchants will also be able to send an invoice to any of the UPI apps besides the payment request that will in return make the payment app more authentic. In other new features, the QR-code will now have a certificate so that the sender is given assurance that the money is getting transferred into the correct account.
VP Deepak Abbott, Paytm senior said that the spike in transfer limits and the facility of transfer from overdraft accounts as well will help UPI to proceed with transactions of bigger amounts as well. He said: “Almost 99 per cent of the eight million merchants accepting Paytm have a full-KYC account and are registered as merchants with Paytm. At present, our transaction ticket size is slightly below our rivals as we have been strongly supporting Paytm for low-value payments
Record growth till June 2018
The transactions of UPI 1.0 have shown a record growth pushed by private payment apps like Google Tez and Paytm. In fact, UPI recorded Rs 25 crore transactions in June 2018 itself. This was a growth by 30 per cent from May 2018 when transactions hit more than Rs 19 crore.
Paytm was the biggest driver in bringing transactions with 38 per cent of contribution trailed by Google Tez with 22 per cent and PhonePe with 19 per cent. NPCI promoted BHIM slipped to fourth place with only a 7 per cent contribution to UPI transactions.