Introduction of UPI in 2016 and the succeeding UPI 2.0 in 2018, turned out to be a game-changer for the payment landscape in India, taking the country a step closer to a cashless economy. An end-to-end digital transacting platform, UPI has revolutionized the payment structure by bringing multiple banking features, seamless fund routing & merchant payments under one umbrella. Facilitating instant payments, seamless and secure transaction experience, UPI is gaining momentum across the country.
Having significantly impacted the other payment systems including card payments as well as net banking, the unified payment interface is likely to drive larger volumes of transactions in the future. Experts project that UPI could go as high as 60 billion annually by 2023, comprising half of India’s digital payment transactions[1]
With nearly 143 banks sharing the interface, the UPI is reinforcing trust in digital transactions pan-India. From a humble beginning to the latest reports of 900 million monthly transactions, (August 2019), UPI has set the ball rolling. The rise of internet connectivity coupled with the penetration of smartphones has contributed immensely towards its success.
UPI Transactions
UPI supports the following financial transactions:
- Pay Request: A Pay Request is a transaction where the initiating customer is sending/pushing funds to the intended beneficiary.
- Collect Request: A collect request is a transaction where the customer receives or pulls funds from the intended remitter by using a virtual ID.
- Non-Financial Transactions: UPI also supports some of the non-financial transactions including mobile banking transactions, generating a one-time password (OTP), checking transaction status and more.
Apart from these, with the various upgradations to the technology such as UPI 2.0, which was introduced in 2018, it keeps getting better and more convenient, both to the customer and the merchants.
Mindgate’s UPI Platform Implementation – A Success Story
Mindgate recently joined hands as a technology partner with a renowned bank for developing its real-time payment space. Mindgate was successful in providing a UPI platform that offered a complete solution to the bank. This helped in the seamless transition from the bank’s existing legacy systems to the modern open banking platform without any hassles. With micro-level planning, it was made possible to migrate around 30 million users from their existing CASA database to the digital platform.
Some Practical Benefits Of The Platform:
- The platform is designed to accommodate 1million direct and 5 million indirect merchants
- Provides a complete suite for the bank to onboard its merchants through automation with all relevant data
- Provides digital collections for merchants on UPI
- Improves efficiency through reduced costs
- Increases non-bank customers’ footprint for real-time payments via social media channels like Google, Samsung pay, Whatsapp, etc.
- Provides a high-speed flow of 1000 transactions per second
- Reduces fraudulent activities by 99% through inline fraud processing
- Increases customer trust in the ecosystem!
Mindgate Immerses In The UPI Journey
Building new generation gateways and mobile-based collections and payment platforms, Mindgate employs an open-source technology framework that is capable of handling high scale and volume. Lately, the company reinforced its position in the global market by entering an alliance with ACI Worldwide, the global leader in payment solutions.
The strategic partnership will accelerate and enhance real-time payments structure globally. The advanced, end-to-end real-time solution will cover banks, financial intermediaries and merchants in India as well as the international market. The merger of two stellar companies is expected to set unprecedented benchmarks in the payment landscape, making the digital payment economy thrive and sustain even in the dynamic economic conditions.
Mindgate continues to be at the forefront of innovative solutions that ensure our clients drive enhanced value and experience for their customers. So, make your move, contact us and avail our offerings to experience the highest level of professionalism, integrity, and responsiveness.
Reference:
1. ACI Worldwide invests in digital payments solutions provider Mindgate Solutions