Future of RuPay, UPI in value-added services: Report, Pg17

Key Highlights:

• A Ministry of Finance report suggests the future of UPI and RuPay lies in value-added services beyond simple transactions.
• The report was released at the 'Chintan Shivir' held in Coorg, Karnataka on February 13-14.
• Government payouts for the incentive scheme promoting RuPay Debit Card and low-value BHIM-UPI transactions rose from Rs 1,889 crore to Rs 3,631 crore between 2021-22 and 2023-24.
• The study surveyed 10,378 respondents across 15 states, including users, merchants, and service providers.

Detailed Insights:

• The report emphasizes integrating micro-credit, insurance, and loyalty programs within payment platforms to enhance engagement and financial inclusion.
• Promotion of advanced features like AutoPay, Credit Line, and UPI IPO through targeted campaigns is recommended to improve awareness.
• Scheduled payments for education, healthcare, and OTT subscriptions can create new use cases, making digital payments essential.
• The study identifies infrastructure gaps and reliability challenges within the UPI ecosystem that require substantial investment.
• The incentive scheme aims to ensure digital payments remain accessible to all sections of society.

Key Concepts Involved:

• UPI (Unified Payments Interface): A real-time payment system that facilitates instant fund transfers between two bank accounts on a mobile platform.
• RuPay: An Indian multinational financial services and payment service system, conceived and created by the National Payments Corporation of India (NPCI).
• BHIM (Bharat Interface for Money): A UPI-based mobile app developed by NPCI to facilitate e-payments directly through banks.