by Sonal Deo
Published Mon, Feb 13th 2017, 10:09 | Technology
The digital payments industry is expected to hit 500 billion dollars by 2020 and may contribute to 15 percent of India's GDP, says a study conducted jointly by Google and the Boston Consulting Group.
Thanks to the increasing penetration of smartphones across various tier towns & upcountry locations & entry of non- banking institution offering payments & financial inclusion services.
Apart from non-banking institutions, entry of payment/ small bank & initiative of government’s Unified Payment Interface or UPI will change the game of entire payment ecosystem in the country.
Government seriousness & market sentiments (acceptance of digital payment as one of the mode of payments) has been encouraging & I find following opportunity of UPI in our day to day life –
1. Transfer money to family /friends/vendors /partners
2. Insurance or utility bill payment
3. Buy train or flight ticket online or book your travel
4. School fee collection
What is Unified Payment Interface Upi Payment
Unified Payment Interface intends to offer an system architecture and a set of standard API / system connectors to facilitate, the next generation online immediate payments leveraging trends such as increasing smartphone adoption, increasing penetration of mobile data, Indian language interfaces.
UPI Participant Entities
Remitter Bank / Issuer Bank
Remitter PSP / Issuer PSP
Upi Payment (NPCI)
Beneficiary PSP / Acquiring PSP
Beneficiary Bank / Acquiring Bank
*PSP and Bank can be a single entity or separate entity
Types of Transactions
Push Transaction (Pay Request) – Payer Initiated
Pull Transaction (Collect Request) – Payee Initiated
UPI Transaction Limits
Presently the Transaction Limit for a UPI Transaction has been set at INR 1 Lac per transaction.
Upi Payment Transaction - Beneficiary Identifier
Account Number + IFSC
Mobile Number + MMID
Aadhaar Number
Virtual Address i.e. UserName@psp; (e.g. abcd9819@indusind)
UPI Transaction Authentication
For transactions through PSP
1st Factor – Device Fingerprint
2nd Factor – BIN/Biometrics
For transaction where Remitter PSP & Remitter Bank are one entity
As per existing 2FA process of Remitter Bank
Source: http://tinyurl.com/jmh9vot