UPI is creating happy shoppers! The latest numbers show that UPI payments have crossed trillions of rupees in the recent quarter. The number is only expected to rise as people shun cards and cash to adopt UPI. To add more boost, RBI now allows linking your credit cards to your UPI payments. Though this facility is being introduced on a trial run with only Rupay cards, other card providers will soon join the list to offer seamless payment options to dear Indians.
UPI has been hailed as a game changer in the digital payment arena, enabling instant money transfers between users without the need for any paperwork or physical delivery. After the government came up with a clear set of rules and regulations enabling banks to adopt UPI as a key mode of payment, consumers have been quick to adopt it and use it for a host of day-to-day transactions.
The number of UPI transactions has been growing at a rapid pace, with the latest numbers showing that UPI payments have crossed trillions of rupees in the recent quarter. This only looks set to continue as people shun cards and cash to adopt UPI.
It has already forced other payment platforms like cards and cash to become obsolete, as it is much faster and more reliable than other modes of payment. Now, with credit cards being allowed to be linked to UPI payments, it is expected to shift the payment scene in India even more. This is being done on a trial basis with only Rupay cards, and other card providers will soon join the list to offer seamless payment options to their dear customers.
What Does This Mean for Customers?
Customers can now make instant payments without the need to carry multiple cards or cash. This has been a game changer for consumers, as it has enabled them to make payments across borders without having to worry about the card not being accepted or the transaction being declined.
UPI has already become the primary mode of payment for a host of day-to-day transactions, with the number of UPI transactions growing at a rapid pace. Now, with credit cards being allowed to be linked to UPI payments, it is expected to further shift the payment scene in India.
Linking your credit cards to your UPI payments allows you to make payments from your credit cards without having to go through the hassle of providing paper copies of your credit card details. This not only saves time but also ensures that your credit card information is safe and secure.
This has already led to a host of new usage patterns, with people using their cards to pay for small utility bills like gas and electricity and shopping online.
How Can UPI payment Help Businesses?
Imagine how much time, labor, and money businesses would save if they could instantly transfer money to another business and avoid overdraft fees. eCommerce businesses can now offer customers instant UPI payments. And this facility is also useful for making small utility payments. Businesses have gained better returns and profits. Money is deposited into their bank accounts instantly. No need to pay transaction charges on card payments.
UPI payments are extremely reliable, with up to 4,000,000 transactions every day. It is this reliability that has made UPI the preferred mode for digital payments in India.
UPI Payment – What Does This Mean for The Indian Economy?
UPI payments are running into thousands of crores every month. This is expected to improve the purchasing power of the common man. This has also led to a dramatic increase in e-commerce transactions, thereby improving sales and profits for businesses.
As a result, the Indian economy is expected to expand by nearly 30% this year. UPI payments are also going to enable India to achieve the target of USD 7.5 trillion of annual transactions by 2025, which is expected to be a 7.7% increase over the 2017 figure.
E-Commerce Businesses That Accept UPI Payments
E-Commerce businesses that accept UPI payments have seen a significant increase in business, with up to 30% of their transactions coming in as UPI payments. This not only leads to higher sales but also generates higher average revenue for the merchants.
UPI payments have resulted in a paradigm shift in the way we pay and send money. They are now used in over 500 million transactions every month, accounting for about 60% of all retail card payments. This is set to increase in India as more merchants get on board.
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Are There Any Risks Involved in Using UPI Payment
There are, however, certain risks associated with accepting credit card-linked UPI payments. While this will certainly offer convenience to the users, it also increases the risk of overspending. This is because the instant nature of UPI payments can lead consumers to make rash decisions.
It is important for merchants to educate their customers on the risks of overspending so that they don’t end up losing out on sales. This could result in a spike in consumer debt as customers can spend without any fear of incurring any financial burden.
Conclusion:
The internet has changed the way we live our lives. UPI payments are going to be around for a long time, and they are going to enhance the way we do business in every way. With the digital push in full effect for UPI payments, one can only imagine the potential savings that it can provide to businesses, both large and small.
UPI payments are going to stay in the payment scene for a long time. People have been quick to adapt to this new change and it has only proven to be beneficial to everyone.
The government is keeping a close watch on UPI payments and introducing better regulations to make them safe and secure for users and merchants alike. The RBI has also been allowing merchants to accept UPI payments via credit cards. This has also led to a host of new usage patterns, with people using their cards to pay for small utility bills like gas and electricity and shopping online.
