Welcome to AM Jain College, where education meets excellence. We are thrilled to announce that admissions are now open for the upcoming academic year.

Welcome to Agurchand Manmull Jain College, where education meets excellence. We're thrilled to announce that admissions are now open for the upcoming year.

Welcome to AM Jain College, where education meets excellence. We're thrilled to announce that admissions are now open for the upcoming year

Future Of UPI Payment in India

A.VENKATESH – Assistant Professor, Department of B.Com ISM & CA

Unified Payments Interface, or UPI, is a technology that combines several bank accounts into a single mobile application. It is anticipated that UPI India will continue to play a big role in the world of digital payments over the coming few years.

A substantial, secure, efficient, and scaleable public digital infrastructure has been developed in India, setting the foundation for a potent, significant “Digital Payments Revolution” on a worldwide scale. 

Tokenizing cards, offline payments, e-RUPI, digital currency, and using UPI for cross-border transactions and toll tax collection will all enhance the sector. The future of payments is expected to be shaped by new technologies like digital currency and BNPL, while UPI, as a retail online transaction platform, is expected to continue to dominate the country’s digital payments industries.

Now let’s shed some light on UPI’s future, one feature at a time.

The majority of UPI transactions have been payer-initiated and P2P-focused. By providing more context about the underlying transactions, UPI 2.0 aims to allay concerns.

With UPI 2.0, you can give your clients a digital invoice along with a collection request, making it easier for them to understand why the request is being made and boosting the amount of side transactions involving the collect submissions.

Rapid response (QR) codes, which are utilised as a payment technique to promote digital payments in small enterprises, are another fascinating feature. There have been instances of fraud involving QR transactions in a few international locations where the code is widely utilised.

The intent/signed QR function intends to address these problems and promote offline merchant payments by more successfully confirming the payee’s identity.

Key characteristics of UPI 2.0

special credit options

Using UPI 2.0 could be quite advantageous for financial institutions, especially when collecting small-ticket loans. Banks may employ a cyclical strategy to generate collect requests. The monthly EMI statement may also be automatically generated and sent to the customer along with such collect requests. The customer can examine the request’s details and give permission for urgent EMI repayment. Although UPI 2.0 offers a number of enhancements that will increase transaction security and simplify consumer payments, the addition of some extra features might increase acceptance.

Linking UPI Credit Cards

The Reserve Bank of India claims that the UPI card may soon be linked to UPI, broadening its application. Payments will be easier to make using QR codes without a Point of Sale (PoS) device thanks to credit card UPI.


In India, the use of digital payment systems is growing quickly, and customers’ reliance on these systems is growing, which makes it necessary to establish an acceptable regulatory framework. There is still a need to develop a strong regulatory framework that would cover both transaction flows and procedural issues, even though the PSS Act’s scope allowed for the creation of the UPI Procedural Guidelines, which were meant to control the UPI payment system in India.