NPCI Launches New UPI Features at GFF 2023

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Just a week after UPI (Unified Payments Interface) transactions in India reached a record high of 10 billion in August, the National Payments Corporation of India (NPCI) has set an ambitious goal of scaling up UPI transactions from the current 10 billion per month to 100 billion per month.

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To achieve this expansion and enhance the digital inclusivity of UPI, NPCI has introduced four new UPI products. These innovations include the provision of a credit line on UPI, UPI Lite X for offline payments, a near-field communication (NFC)-enabled Tap & Pay feature, as well as conversational payments through Hello! UPI and conversational bill payments with BillPay Connect.

These new developments come shortly after NPCI’s chief, Dilip Asbe, expressed at the Global Fintech Festival 2023 that UPI has the potential to grow nearly tenfold, reaching several billion transactions per day by 2030.

Credit Line on UPI

The introduction of the “credit line on UPI” feature will enable users to make payments for transactions using credit, connecting pre-approved digital credit lines from banks. Importantly, the payment process for this new feature will follow the same flow as existing UPI transactions.

According to NPCI, the “credit line on UPI” feature will significantly expedite the process of accessing, connecting, and utilizing credit lines. This innovation is expected to provide banks and financial institutions with the opportunity to offer credit directly to a broader customer base, reducing reliance on credit apps for distribution. Initially, third-party payment providers like Paytm, Google Pay, and HDFC PayZapp will be among the first to launch the “credit line on UPI” service.

India’s credit market is projected to grow tenfold by the end of this decade, and a trend known as the “sachetisation of credit” is emerging. The UPI operator is collaborating with HDFC Bank and ICICI Bank to facilitate full digital onboarding, offering real-time access to credit and empowering customers to manage and utilize it effectively.

UPI Lite X

NPCI, the operator of UPI (Unified Payments Interface), has introduced UPI Lite X for offline payments. This new feature enables users to send and receive money even when they are offline, expanding its utility to various locations, including flights, underground metro stations, and other merchant establishments.

In the previous year, NPCI launched UPI Lite, which permitted users to conduct small-ticket transactions without the need to enter a PIN. UPI Lite X builds upon this service, providing additional convenience and flexibility for offline payments.

UPI Tap & Pay

In addition to UPI Lite X, NPCI has introduced UPI Tap & Pay, a feature that enables users to make payments using near-field communication (NFC) technology.

This development aligns with recent initiatives in the industry, such as Pine Labs and Paytm launching new versions of their point-of-sale (PoS) devices that facilitate the acceptance of NFC-based payments by merchants. These advancements are expanding the reach and acceptance of NFC-based payment use cases.

Conversational Payments – Hello! UPI

NPCI has expanded its UPI service by venturing into conversational payments, introducing Hello! UPI and BillPay Connect. Earlier reports had indicated that NPCI was developing a voice bot interactive system for Indian consumers to facilitate payments through UPI.

With the launch of Hello! UPI, users can now make voice-enabled UPI payments through UPI apps, telecom calls, and IoT (Internet of Things) devices, and it supports both Hindi and English. The service is expected to be extended to regional languages in the future.

Conversational Bill Payments – BillPay Connect

BillPay Connect, on the other hand, introduces a nationwide number for bill payments through Bharat BillPay. This allows customers to conveniently access and settle their bills on messaging apps. Furthermore, customers without smartphones or immediate mobile data access will be able to make bill payments by simply giving a missed call, making bill settlement more accessible and user-friendly.

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