UPI payment system has driven the evolution and innovation of the world. It is open-sourced and capable of managing a massive load of transactions. It flexes affordability and scalability, supporting the economic health of the country. UPI has made us rely on digital transaction systems. All the small and big merchants and individuals manage their day-to-day transfers through these UPI systems. It has mitigated the risk of fraud and improved the trust and reliability of P2P & P2M.
UPI 2.0 can address the underlying transaction concerns and conventional credit risk assessment and boost the authenticity between the payer and receiver. It will be adopted by all the top-level private and public banks, such as SBI, IDBI, Kotak Mahindra, RBL, Axis, HDFC, IndusInd, Federal, HSBC, and YES bank.
The new version will relieve the individual from deferring payment and comfort with the short-term credit facilities for their needs. UPI 2.0 features new accessibility to access credit through overdraft accounts. In addition, people will be able to process the withdrawal and payment in the event of insufficient balance.
UPI 2.0 Features And Their Application In Industries
It contains exciting features that deliver a top-notch merchant payment experience. It integrates advanced security and convenience to enhance user adoption. Below we have listed to most salient features of this new version of UPI 2.0.
- Invoice in the inbox
- QR Signed Intent
- Overdraft Account Integration
- One-time mandate
Invoice in the inbox
Get the invoice detail in advance before confirming merchant payment. It's better to verify and validate things before it is too late.
QR Signed Intent
Now the customer can verify the merchant's identity via QR codes. They have a pre-payment invoice, but this intent will drive robustness and credibility. It eliminates the QR temperament and needs an app passcode. If there's any security concern, the customer will get a notification. QR and signed intent will drive speed and authenticity.
Overdraft Account Integration
Drive the digitization to your overdraft account & relax your insufficient A/C balance charges. This new feature will enable convenience, & rapid transaction processing. Subsequently, establish it as a companion channel for OD account users.
The Indian Fintech industry is growing incredibly. UPI 2.0 version will raise its graph across all sectors and enhance the adoption of the digital payment system.
The one-time mandate
First, buy or pre-authorize and then confirm the payment. One-time mandate integration is worthwhile for merchants and consumers both. It will build trust and establish a better brand reputation. This feature enables instant order creation and initiates the delivery execution cycle. Once the product is handover to the customer, the merchant account will credit to confirm the purchase.
Industry-wise Application of UPI 2.0
UPI 2.0 will transform all industries and influence the P2M in an innovative state. One of the attractions of UPI transactions is that amount capped to 2,00,000 will impact the experience with premium products and services.
Corporate & SMEs, Travel, Finance, eCommerce, Healthcare, Micromerchant, and other utility Subscription UPI 2.0 features will influence each one in a versatile manner.
Corporate/ SMEs:
UPI 2.0 will release digital invoices containing all the information about the products. Additionally, it will also mention the collection requests & periodic reminders. This new version is genuinely worth the B2B transactions.
Travel:
UPI 2.0 has introduced the one-time mandate feature to ease advanced ticket booking for movies, cabs, hotel rooms, etc.
Finance:
Finance industries can review and analyze the transaction data and overdraft accessibilities to ease credit accessibility and launch the credit profile.
Ecommerce:
We all are fascinated with online shopping platform accessibilities. The release of the UPI 2.0 version will upgrade the authenticity for shoppers/merchants, replacing the COD payment accessibility. The merchant account can only receive the funds after the product is delivered.
Healthcare:
Brief the patients about contextual insights of pathology reports and observation roundups with payment collection requests.
Micromerchant:
UPI integrates the QR Signed intent feature to enhance the usage of modest payment for micro-merchants.
NBFCs & MFIs:
UPI 2.0 will mitigate the risk of payment failure through the one-time mandate features. UPI payment collection will instantly release incentives and minimize the collection cost.
Subscription:
Manage the trouble-free transactions for DTH, OTT streaming entertainment, and 3moths pull requests for school/ gym subscriptions.
Finishing line:
With each version update from 2016 to now, the digitized payment adoption graph is increasing. It shows merchants and customers both are comfortable with the UPI 2.0 features. Be it Android, iOS, or windows devices, UPI is compatible with all.
These integration boost trust & authenticity by resolving all the fund transfer concerns. Banks, merchants, and consumers are impressed with these new accessibilities. MD & CEO of NPCI, Mr. Dilip Asbe, stated that this evolutionary initiative would conquer the milestones that drive the transformation.