India is solidifying its position as a global leader in digital payment technologies, with the internationalization of the Unified Payments Interface (UPI) progressing swiftly, according to a report by the Reserve Bank of India (RBI). The UPI achieved a significant milestone in October, recording 16.6 billion transactions in a single month, alongside notable improvements in its performance metrics.

Successful instant debit reversals, for example, increased to 86% in October 2024, up from 77% during the same period last year. Highlighting UPI’s capabilities, RBI Deputy Governor Michael Debabrata Patra noted its ability to integrate multiple bank accounts into a single mobile application, enabling seamless peer-to-peer (P2P) and person-to-merchant (P2M) interbank transactions.

Innovations Driving Digital Financial Growth

Patra highlighted other advancements complementing UPI’s success:

1. Account Aggregators and OCEN: Innovations such as the Account Aggregator framework and the Open Credit Enablement Network (OCEN) are driving productivity gains by streamlining access to digital credit.
2. ONDC Expansion: The Open Network for Digital Commerce (ONDC) now operates in over 720 cities, handling 49.72 million orders as of March 2024.
3. TReDS for MSMEs: The Trade Receivables Discounting System (TReDS) addresses the ₹52.2 trillion credit gap faced by MSMEs, reducing funding costs by up to 2.5 percentage points. The value of invoices financed through TReDS has grown over 23 times since its inception.

Rising Digital Adoption and Embedded Financing

India’s digital revolution is reaching wider demographics:

• Internet Usage: Approximately 40% of the rural population and 78% of people aged 20-30 actively use the internet.
• E-Commerce Growth: Around one-third of households engage in online purchases, with a growing share in categories such as consumer durables and food.

The emergence of embedded financing is reshaping the FinTech landscape. Its share in FinTech funding has grown from 2% in 2020 to 9% in 2024, indicating rising demand for integrated financial solutions.

Digitalisation Index Reflects Economic Transformation

To measure the impact of digitalization, the RBI has developed a Digitalization Index using a dynamic factor model (DFM). The index indicates steady growth, reflecting the ongoing transformation of India’s economy. This digital shift is also influencing monetary policy transmission, creating new research opportunities to understand its broader economic impact.

India’s Unique Position for Digital Leadership

India’s robust digital public infrastructure (DPI), a thriving information technology sector, and a burgeoning youth population—including one of the largest bases of AI talent—position the country to unlock new growth opportunities. According to Patra, these factors equip India to optimise existing resources and spearhead transformative global innovations.

As the UPI continues to gain international traction, India’s digital revolution sets a benchmark for other nations aspiring to leverage technology for economic growth and inclusion.

Paytm has unveiled a new UPI Lite auto top-up feature designed to simplify daily transactions for its users. This innovative service automatically replenishes the UPI Lite balance when it falls below a set threshold, ensuring a seamless experience for payments under ₹500. With this, Paytm continues to enhance its digital payment offerings, catering to the needs of users who rely on UPI for small-value transactions.

How the Feature Works

The UPI Lite auto top-up eliminates the hassle of manually reloading your UPI Lite balance. Users can set a predefined threshold, and when their balance dips below this limit, the system automatically recharges it with a predetermined amount from their linked bank account. This ensures uninterrupted payments without requiring constant monitoring or manual intervention.

Key Highlights of the UPI Lite Auto Top-Up

1. Designed for Small Payments:
   • Ideal for transactions under ₹500, such as groceries, snacks, or travel fares.
   • These payments do not require a PIN, making them faster and more convenient.
2. Hassle-Free Transactions:
   • Automatic top-ups save time and effort, ensuring users always have sufficient balance in their UPI Lite account.
3. Focus on Convenience:
   • Users can avoid delays caused by insufficient balance, especially for high-frequency, low-value transactions.
4. Secure Process:
   • The auto top-up feature operates within the secure framework of UPI Lite, offering a safe and reliable payment experience.

Paytm’s Recent Innovations in UPI

This launch follows Paytm’s introduction of international UPI transactions, enabling users to make payments in six countries, including Singapore, the UAE, and Mauritius. The integration of UPI Lite auto top-up complements this global expansion by strengthening its domestic digital payment ecosystem.

Benefits for Users

1. Seamless Payment Experience:
   • The auto-recharge function removes the inconvenience of running out of balance during crucial transactions.
2. Enhanced User Efficiency:
   • Users can focus on their daily activities without worrying about maintaining their payment balance.
3. No PIN Required for Payments:
   • Transactions under ₹500 made via UPI Lite are PIN-free, speeding up the payment process.
4. Encouraging Digital Adoption:
   • By simplifying small-value payments, Paytm is making digital payments more accessible to all user segments, including first-time adopters.

How to Activate the UPI Lite Auto Top-Up

• Step 1: Open the Paytm app and navigate to the UPI Lite settings.
• Step 2: Set a balance threshold that will trigger the auto top-up.
• Step 3: Specify the amount to be recharged automatically when the balance falls below the threshold.
• Step 4: Link your preferred bank account to enable the automatic recharge feature.

Once activated, the system will handle top-ups in the background, ensuring a consistent and uninterrupted payment experience.

Boosting UPI Adoption in India

The UPI Lite auto top-up feature aligns with India’s vision of increasing digital payment adoption across all demographics. With its focus on small-value transactions, this service aims to cater to millions of users, including those in tier-2 and tier-3 cities where digital payment usage is steadily growing.

As digital transactions become a part of everyday life, Paytm’s latest feature is expected to further strengthen its position as a leader in the UPI ecosystem, offering unparalleled convenience to its users.

RBI Raises UPI 123Pay Transaction Limit to ₹10,000 for Feature Phone Users

The Reserve Bank of India (RBI) has increased the transaction limit for UPI 123Pay from ₹5,000 to ₹10,000, empowering feature phone users to make higher-value digital payments. UPI 123Pay is specifically designed for individuals without internet access on their mobile phones, offering multiple ways to perform digital transactions seamlessly:

How UPI 123Pay Works

1. IVR (Interactive Voice Response): Users can complete transactions through a voice-based system by following simple instructions.
2. Missed Calls: Payments are triggered by dialing specific numbers and hanging up, initiating a secure payment process.
3. OEM (Original Equipment Manufacturer) Apps: Feature phone apps enable users to make transactions without requiring internet connectivity.
4. Sound-Based Technology: Sound waves are used to securely transmit payment information between devices.

Key Changes Introduced

1. Higher Transaction Limit:
   • The maximum transaction limit has been increased to ₹10,000, doubling the previous limit of ₹5,000.
2. Enhanced Security with Aadhaar OTP Authentication:
   • Aadhaar-based OTP authentication will be integrated into UPI 123Pay transactions to provide an additional layer of security.
3. Standardized Transaction Tagging:
   • A new purpose code (86) has been introduced to categorize and track UPI 123Pay transactions more efficiently.
4. Improved Initiation Modes:
   • UPI 123Pay now supports expanded initiation modes, including IVR, missed calls, feature phone apps, and sound-based payments.
5. UPI Number Functionality:
   • The system will enable payments using a unique UPI numeric ID mapper for added convenience.

Implementation Timeline

The National Payments Corporation of India (NPCI), which oversees UPI, has directed banks and service providers to adopt these changes immediately. Full compliance with the new guidelines is expected by January 1, 2025.

What is UPI 123Pay?

UPI 123Pay is a groundbreaking service that makes digital payments accessible to feature phone users who lack internet connectivity. By leveraging simple technologies such as IVR calls, missed calls, and sound-based communication, it bridges the gap between underserved populations and digital financial services.

Benefits of the Updates

1. Increased Convenience:
   • The higher transaction limit will allow users to make more significant payments while staying within the UPI ecosystem.
2. Enhanced Security:
   • Aadhaar OTP authentication strengthens transaction security, ensuring safer digital payments for feature phone users.
3. Streamlined User Experience:
   • Standardized tagging and expanded payment modes simplify the payment process, enhancing usability.

These updates aim to accelerate the adoption of digital payments across India, especially in rural and underserved regions, further contributing to the country’s financial inclusion goals.

Are you someone who relies heavily on Unified Payments Interface (UPI) apps for daily payments? If so, you’re not alone. UPI has revolutionized digital payments in India, making it easy and hassle-free to pay for anything from groceries to utility bills. But what if you could combine the convenience of UPI with the flexibility of a credit card? Enter UPI credit cards, a game-changing solution for modern-day payments.

What Are UPI Credit Cards?

UPI credit cards bring together two popular payment methods: UPI and credit cards. Traditionally, UPI payments were linked directly to your savings account. This meant that you could only pay merchants or vendors if you had sufficient funds in your bank account. With UPI credit cards, however, you can now make payments on credit.

This feature enables users to carry out real-time UPI transactions while charging the amount to their credit card. The money is deducted from the credit card limit rather than your bank account, offering financial flexibility and convenience.

UPI credit cards can be used through popular mobile apps such as Paytm, PhonePe, MobiKwik, BHIM, and Airtel Money, as well as apps provided by various banks. The Reserve Bank of India (RBI) enabled this feature in June 2022 by allowing credit cards to be linked to UPI. This step was a response to the growing preference for UPI among younger users who find traditional credit card processes, such as swiping at POS terminals and entering OTPs, cumbersome.

The Advantages of UPI Credit Cards

1. Pay Even Without Funds in Your Bank Account
   UPI credit cards allow you to make payments even if you don’t have money in your savings account at the time of the transaction. The amount is charged to your credit card, which you can repay during the card’s billing cycle. This feature is particularly useful for managing short-term cash flow issues or making urgent payments.
2. Streamlined Financial Records
   Regular UPI payments linked to your bank account can clutter your bank statement with dozens of small transactions. UPI credit cards solve this problem by consolidating all payments into a single entry on your bank statement when you pay your credit card bill.
   • Example: If you make 100 small transactions in a month using UPI linked to your bank account, each transaction is listed separately in your statement. However, if these payments are made via UPI credit card, they appear as a single consolidated payment in your bank statement after you settle the credit card bill.
3. Access to Credit Card Benefits
   Using a UPI credit card enables you to enjoy the rewards and benefits that come with credit cards, such as:
   • Cashback and Reward Points: Earn points or cashback for every UPI payment.
   • Offers and Discounts: Avail of exclusive deals provided by credit card issuers.
   • Credit Building: Improve your credit score by using the card responsibly.
4. Enhanced Reach of Credit Card Payments
   UPI is widely accepted across India, from large retail stores to local street vendors. By linking your credit card to UPI, you can use your credit card in places where traditional card machines (POS terminals) are not available, effectively increasing the reach of credit payments.

How UPI Credit Cards Work

1. Linking Your Credit Card to UPI
   Instead of linking your UPI app to your bank account, you link it to your credit card. This feature is currently available for RuPay credit cards issued by various banks.
2. Transaction Process
   When making a payment via UPI, the amount is debited from your credit card rather than your bank account. The process remains as seamless as any UPI payment: scan the QR code, enter the amount, and confirm the transaction.
3. Repayment Cycle
   Like any credit card, you settle your bill during the card’s billing cycle. This includes all UPI transactions made during the period. Timely repayment ensures you avoid interest charges and helps you maintain a good credit score.

Who Can Use UPI Credit Cards?

Currently, this service is available for users with RuPay credit cards, which can be linked to UPI apps. Many banks have already started offering this feature, and it is expected that other card networks like Visa and Mastercard may follow suit in the near future.

Why UPI Credit Cards Are a Game-Changer

1. A Boost for the Digital Economy
   UPI credit cards bridge the gap between digital payments and credit access, encouraging more merchants and consumers to adopt cashless transactions.
2. Convenience Without Compromise
   Users no longer need to carry physical credit cards or rely on POS machines for transactions. Payments can be made using just a smartphone, anytime and anywhere.
3. Empowering Small Businesses
   Small vendors and shopkeepers, who primarily accept UPI, can now benefit from customers paying with credit. This boosts sales and expands their customer base.

The Future of UPI Credit Cards

With their ability to combine the flexibility of credit with the ubiquity of UPI, these cards are poised to transform the payments ecosystem. As more banks and payment networks adopt this technology, UPI credit cards will likely become a standard payment method, empowering users with better financial flexibility and streamlined payment processes.

If you value the ease of UPI but also want to leverage the power of credit cards, it’s time to explore UPI credit cards – the future of seamless and flexible payments.

In a significant move to boost digital payment accessibility, the Reserve Bank of India (RBI) has increased the transaction limit for UPI 123Pay from ₹5,000 to ₹10,000 per transaction. This change, effective October 9, 2023, reflects RBI’s commitment to advancing financial inclusion and broadening the reach of digital payment systems. The National Payments Corporation of India (NPCI) has directed banks, public sector banks (PSBs), and service providers to implement these updates by January 1, 2025.

What Is UPI 123Pay?

UPI 123Pay is a feature-rich platform that allows users with feature phones to access UPI services without requiring an internet connection. This innovation bridges the digital divide, enabling millions of users without smartphones or stable internet access to participate in India’s growing digital economy.

The platform supports four key payment methods:

1. Interactive Voice Response (IVR) Numbers: Users can make payments by calling a designated number and following the voice-guided instructions.
2. Missed Call Services: Payments can be triggered by giving a missed call to pre-assigned numbers, which prompts authentication and transaction completion.
3. OEM-Embedded Apps: Feature phones with pre-installed UPI apps can facilitate payments and related services.
4. Sound-Based Technology: Transactions are enabled via ultrasonic sound waves for secure and quick payments.

These mechanisms make UPI 123Pay an inclusive payment system designed to serve the unconnected and underbanked population.

Key Changes to Be Implemented by January 1, 2025

1. Increased Transaction Limits

• The transaction cap for UPI 123Pay is being doubled, increasing from ₹5,000 to ₹10,000 per transaction. This allows users to conduct higher-value transactions, especially beneficial for small businesses, merchants, and high-value peer-to-peer transfers.

2. Aadhaar OTP Integration

• To enhance security and simplify the onboarding process, Aadhaar OTP authentication will be introduced for UPI 123Pay. This will make it easier for users to register and access UPI services securely.

3. Transaction Tagging and Identification

• New Purpose Code (Code 86): All UPI 123Pay transactions must include the newly assigned purpose code 86 in the purpose tag to classify financial and non-financial transactions accurately.
• Updated Initiation Modes: Previously used initiation mode “31” will be invalid. Banks and service providers must adhere to updated procedural guidelines for transaction initiation modes.
• Integration with UPI Numeric ID Mapper: UPI members are required to implement numeric ID functionality, ensuring seamless mapping and processing of numeric identifiers in UPI transactions.

4. Expanded UPI Lite Wallet Limits

• As part of a broader strategy, the RBI has also raised the UPI Lite wallet balance limit from ₹2,000 to ₹5,000 and the per-transaction limit from ₹500 to ₹1,000. UPI Lite, designed for small-value offline transactions, further complements the overall UPI ecosystem.

Why These Changes Are Significant

Driving Financial Inclusion

With over 300 million feature phone users in India, UPI 123Pay plays a pivotal role in bringing the benefits of digital payments to underserved communities, particularly in rural and semi-urban areas. By raising the transaction limit and integrating Aadhaar OTP, the system becomes more robust and accessible.

Promoting Higher-Value Transactions

The increased transaction limit will encourage broader adoption among merchants and users, facilitating higher-value transactions and supporting small businesses.

Strengthening Security and Compliance

New tagging protocols, numeric ID mapping, and procedural updates are designed to enhance transaction accuracy, reduce errors, and strengthen security. These measures will streamline the process for users and service providers alike.

RBI’s Vision for UPI

RBI Governor Shaktikanta Das emphasized the transformative role of UPI in reshaping India’s financial landscape. By making digital payments more inclusive, accessible, and secure, UPI has become a cornerstone of India’s digital economy.

Das highlighted that the latest updates, including the expanded UPI Lite wallet limits, align with the vision to promote innovation and encourage adoption of UPI services across demographics. These steps aim to further deepen the reach of digital payments and ensure financial inclusivity at scale.

What Lies Ahead

The implementation deadline of January 1, 2025, provides sufficient time for stakeholders, including banks, PSBs, and service providers, to adapt their systems and comply with the new guidelines. The combined updates for UPI 123Pay and UPI Lite underline the RBI’s commitment to fostering a comprehensive digital payment ecosystem, ensuring no user is left behind.

These developments mark a significant step toward empowering every Indian with the tools to participate in the country’s rapidly growing digital economy.

Paytm Unveils International UPI Payments: Revolutionizing Global Transactions for Indian Travelers

Paytm, a leader in digital payments and operated by One97 Communications Limited (OCL), has launched its International UPI payment feature, marking a pivotal step in diversifying its services beyond India. This groundbreaking initiative allows Indian travelers to conduct seamless, cashless transactions in multiple global destinations where UPI (Unified Payments Interface) is accepted. Countries currently supporting this feature include the UAE, Singapore, France, Mauritius, Bhutan, and Nepal.

The introduction of International UPI aligns with Paytm’s mission to innovate and enhance user convenience. As international travel continues to grow, this feature eliminates the need for physical currency exchanges, making it easier for Indian travelers to pay for goods and services abroad.

What is Paytm’s International UPI, and How Does It Work?

Paytm’s International UPI operates with the same simplicity and efficiency as domestic UPI payments. Users can activate the feature effortlessly by linking their bank accounts. When travelers scan a UPI-enabled QR code abroad and opt to pay using UPI, the Paytm app prompts them to activate the international payment feature instantly.

The setup process is straightforward, requiring just a few taps, and ensures that users have immediate access to international UPI transactions. This convenience means travelers can confidently shop, dine, or explore without the hassle of cash or international credit card fees.

Key Features and Benefits

1. Seamless Activation and Usage:
   Users can enable the international UPI feature quickly through the app. Once activated, transactions can be completed with the same ease as domestic payments.
2. Customizable Usage Periods:
   To enhance security, travelers can set a usage duration for international UPI payments, ranging from 1 to 90 days. The feature automatically deactivates after the selected period, safeguarding against accidental use.
3. Transparent Costs:
   Before confirming a transaction, users can view precise foreign exchange rates and any associated bank charges. This ensures clarity and eliminates surprises.
4. Enhanced Security:
   The system prevents accidental payments to foreign merchants after the user has returned to India, offering better control over financial transactions.
5. Integrated Spending Tracking:
   Alongside the international UPI launch, Paytm has introduced a UPI statement download feature, allowing users to review their spending with detailed transaction records.

A Visionary Move for the Digital Payment Ecosystem

A Paytm spokesperson underscored the importance of this feature in a recent statement:
“As pioneers in mobile payments, our focus remains on providing innovative solutions that bring greater convenience to our users. UPI International allows Indian travelers to make secure, cashless payments in global destinations like the UAE, Singapore, France, Mauritius, Bhutan, and Nepal. With the upcoming holiday season, this launch is poised to make foreign travel smoother and more enjoyable for millions.”

This move positions Paytm as a forerunner in adapting India’s widely-used UPI system for global utility. By enabling international UPI transactions, Paytm extends the benefits of cashless payments beyond domestic borders, empowering Indian travelers with greater financial freedom and convenience.

The Broader Implications for Indian Travelers

With this update, Indian travelers no longer need to rely on cash or expensive international credit cards for foreign transactions. The feature is particularly useful for shopping, dining, transportation, and other activities while traveling. The ability to deactivate the feature after the trip also ensures enhanced security and peace of mind.

Additionally, the transparency offered through real-time foreign exchange rates and bank fee disclosures helps travelers manage their budgets more effectively. This is a significant step in eliminating the unpredictability often associated with international payments.

Impact on Paytm’s Market Performance

The announcement of this innovative feature has positively impacted the performance of One97 Communications Ltd., Paytm’s parent company, in the stock market. Shares opened at ₹787 on the Bombay Stock Exchange (BSE) and rose by 3.62%, trading at ₹812.25.

The stock has seen a 4.47% increase over the past five days, demonstrating resilience amidst market volatility. Over the last month, it has posted impressive growth of 11.61%. Analysts predict that the International UPI feature could further drive Paytm’s growth, strengthening its position as a leader in digital payment solutions.

A Game-Changer for Indian Travelers and Paytm

Paytm’s International UPI launch marks a transformative milestone for Indian travelers and the broader payments ecosystem. By enabling cashless, secure, and convenient transactions abroad, Paytm is not just expanding its service portfolio but also setting a new benchmark in digital innovation.

As global travel becomes increasingly accessible, this feature ensures Indian users are equipped with cutting-edge financial tools, making Paytm an essential companion for both domestic and international journeys. With continued innovations, Paytm is well-positioned to lead the charge in shaping the future of digital payments globally.

Currently, the Unified Payments Interface (UPI) is operational in seven countries: France, the UAE, Singapore, Bhutan, Sri Lanka, Mauritius, and Nepal. The National Payments Corporation of India (NPCI), which oversees the UPI and RuPay services, is now in discussions with 10 additional countries to expand its digital payment footprint across the globe.

Dilip Asbe, the Managing Director and CEO of NPCI, shared these updates during his address at the 11th SBI Banking & Economics Conclave. He mentioned that while UPI has made significant strides internationally, the work is far from complete. “For UPI, we’ve signed agreements with three countries, but the implementation may take a few more weeks,” Asbe explained. He further added that commercial agreements have already been signed with Namibia, Trinidad and Tobago, and Peru, signaling growing interest from international markets in adopting India’s payment infrastructure. “There’s much work left in terms of globalizing the UPI and RuPay stack,” Asbe continued. “At this point, five to six countries have officially signed up, and another 10 countries are in active discussions with us.”

Asbe emphasized the challenges involved in expanding UPI and RuPay globally, particularly in terms of technical infrastructure, regulatory alignment, and market adoption. Nevertheless, he expressed optimism about the future and the potential to scale UPI and RuPay across multiple regions.

Since its launch in 2016, UPI has drastically improved its performance, especially in terms of transaction success rates. Asbe highlighted the significant reduction in transaction failure rates over the years, underscoring the robustness of the platform. “The technical decline rates have reduced to 0.7-0.8% from a high of 8-10% in 2016,” he said. This improvement has been crucial to maintaining UPI’s reliability and supporting its rapid growth in India and abroad.

In terms of adoption and transaction volumes, UPI has seen impressive growth. According to the latest data from NPCI, the average daily transaction count exceeded 500 million in September 2024, marking a significant jump from 483 million in August 2024. The total value of transactions processed by UPI in September reached an astounding Rs 20.64 lakh crore, with 15.04 billion transactions being processed that month. This rapid growth is a clear indication of UPI’s increasing role in India’s digital economy, as over 400 million people in the country now rely on UPI for real-time payments.

Looking ahead, Asbe also spoke about the evolving nature of the payment ecosystem in India, with a particular focus on UPI Lite. UPI Lite is designed to handle small-value transactions without the need for a UPI PIN, making it easier for users to make quick, low-cost payments. Asbe stated that the industry is actively working towards migrating low-ticket transactions to UPI Lite. “The strategy is to move small payments to UPI Lite as time passes,” he said. This initiative is aligned with the growing need for efficient payment solutions that cater to everyday, low-value transactions.

The Reserve Bank of India (RBI) has also supported this shift by raising the limits for UPI Lite wallets. In October 2024, the RBI doubled the per-transaction cap for UPI Lite from Rs 500 to Rs 1,000 and increased the overall wallet limit from Rs 2,000 to Rs 5,000. These changes are expected to further boost the adoption of UPI Lite, making it a convenient option for users looking to make small transactions seamlessly and securely.

NPCI’s continued efforts to expand UPI and RuPay internationally and enhance the domestic payment ecosystem reflect its ambition to make India a global leader in digital payments. By scaling these platforms to new markets and innovating solutions for small payments, NPCI aims to support both financial inclusion and global economic connectivity.

Yes Bank has partnered with Vegapay, a leading technology provider in banking software, to launch a hyper-configurable platform called Credit Line on UPI, according to a press release by Vegapay. This platform enables Yes Bank to create tailored credit programs to meet diverse customer needs. Through the platform, the bank can decide whether to offer interest-free or interest-bearing credit, allow installment payments (EMIs), and establish rules for different scenarios using an intuitive interface.

The solution includes a customizable app and a user-friendly dashboard, simplifying integration with existing banking systems. Rajan Pental, Executive Director of Yes Bank, commented on the initiative, stating, “UPI has transformed digital payments in India, but there is still a gap in providing formal credit access to a broader audience. Yes Bank processes one in every three digital payment transactions in India, reinforcing its leadership in the UPI ecosystem. With Credit Line on UPI, we aim to bridge this gap and enable a credit-driven future for millions of Indians. Our partnership with Vegapay provides us with a robust platform that meets security and compliance standards while delivering seamless credit solutions.”

The collaboration seeks to redefine credit access in India, empowering banks to deliver modern credit experiences to millions of customers.

UPI has become the backbone of India’s digital payments ecosystem, with over 350 million active users and more than 14 billion monthly transactions. Despite this growth, formal credit access remains limited, with only 15-20% of users owning credit cards. As UPI transactions are projected to grow at an annual rate of 57% through FY 2024, the market for UPI-linked credit products is expected to exceed $50 billion by 2025.

By leveraging UPI’s extensive reach, the partnership between Yes Bank and Vegapay aims to address this gap, offering flexible and accessible credit solutions. Nalin Bansal, Chief of Fintechs, Corporates, and Key Initiatives at NPCI, praised the collaboration, highlighting Vegapay’s swift execution and technological innovation. He stated, “Vegapay’s Credit Line on UPI platform, launched through the NPCI Partner Program, sets a benchmark for the industry. This seamless partnership between Yes Bank and Vegapay will drive financial inclusion and enhance the credit experience for both existing and new banking customers.”

The move underscores a growing trend among leading banks like Yes Bank to explore UPI-linked credit offerings, responding to the rising demand for flexible, modern financial solutions.

Indian travelers now have access to a revolutionary cashless payment solution abroad with the launch of Paytm’s Unified Payments Interface (UPI) International service. One97 Communications Limited (OCL), the parent company of Paytm, has introduced this innovative feature to make international transactions smoother and more convenient for Indian users.

With UPI International, Indian users can make seamless payments at various international locations without the need for foreign exchange or carrying physical cash. The service currently supports payments in countries such as the UAE, France, Singapore, Mauritius, Bhutan, and Nepal, where UPI is accepted by merchants. This development is particularly beneficial for Indian tourists, students, and business travelers, providing them with a hassle-free and secure way to pay for goods and services abroad.

This feature aligns with the global expansion of UPI, which has gained recognition as a fast, reliable, and secure digital payment system. By integrating UPI with international merchants, Paytm is not only simplifying payments for its users but also contributing to the broader adoption of Indian digital payment technologies on a global scale. The move highlights India’s leadership in the digital payments landscape and its ambition to promote indigenous financial technologies worldwide.

The UPI International feature also includes enhanced security protocols to ensure safe transactions, offering Indian users peace of mind while making payments in foreign countries. Paytm’s user-friendly interface and widespread adoption within India make it easier for users to transition to using UPI internationally, bridging the gap between domestic and global payment ecosystems.

This launch is a significant step towards achieving a truly global cashless economy, reflecting the growing acceptance of digital payments worldwide. Paytm’s commitment to innovation and its focus on providing convenience to its users continues to redefine the way payments are made, whether at home or abroad.

UPI (Unified Payments Interface) enables transactions to be processed instantly at any time of the day or night. This 24/7 availability includes weekends, public holidays, and even during non-banking hours, a significant departure from traditional banking methods where transactions may be limited to business hours or take longer to process, especially on holidays.

This round-the-clock accessibility has transformed the way people and businesses handle financial transactions. For example:

• Convenience for Users: Customers can send or receive money whenever they want, without waiting for the next business day, which is particularly useful in emergencies or urgent payment situations.
• Business Operations: Businesses, especially e-commerce platforms and small vendors, can receive payments instantly, even during late hours or holidays. This smoothens cash flow and helps manage real-time financial needs.
• Reduced Dependency on Cash: Since UPI transactions don’t depend on bank operating hours, users are encouraged to rely less on cash, as digital payments are accessible at any time.

24/7 availability of UPI enhances the efficiency, accessibility, and flexibility of financial transactions, making it an integral part of India’s digital economy.

1. Breaking Down Traditional Banking Barriers:

• Traditional bank transfers, such as NEFT (National Electronic Funds Transfer) and RTGS (Real-Time Gross Settlement), used to operate only within specific banking hours and sometimes did not function on weekends or public holidays. UPI breaks this barrier by enabling anytime, instant transactions, which has modernized digital banking for the average consumer and business.

1. Enabling a Cashless Society:

• The 24/7 accessibility of UPI aligns well with the Indian government’s push toward a cashless economy. With no reliance on ATMs or banks’ physical locations, users are increasingly adopting digital payments over cash, even for small, everyday purchases, making it easier to reduce physical currency usage.

1. Supports Emergency Payments:

• UPI’s 24/7 functionality is especially valuable during emergencies, where users might need to transfer funds immediately, even at night or on holidays. For instance, during medical emergencies, people can quickly send money to hospitals or caregivers without the delay of traditional banking hours.

1. Enhancing Business Operations:

• For businesses, especially in sectors such as e-commerce and retail, UPI’s round-the-clock operation allows them to process orders and payments without delay. This facilitates quicker order fulfillment and enhances customer satisfaction as businesses can verify payments in real-time.
• Small businesses and local vendors benefit significantly since they can receive instant payments at any time, even after normal business hours, which helps with cash flow and operational flexibility.

1. Financial Inclusion for Rural and Remote Areas:

• People in rural areas, who may not have easy access to bank branches or ATMs, can use UPI for their financial needs whenever necessary. This has been instrumental in enhancing financial inclusion and offering digital banking access to people in remote regions who can now participate in the digital economy seamlessly.

1. Promoting Convenience and User Control:

• Users have the flexibility to make payments or send funds whenever they want, allowing them complete control over their financial activities. They can avoid the pressure of completing transactions within business hours, reducing stress and improving user satisfaction. This freedom has redefined convenience, as users can manage their finances on their schedule.

1. Encouraging Digital Literacy:

• With UPI’s round-the-clock availability, more people have adopted digital payment methods, which indirectly promotes digital literacy and familiarity with online financial services. This continuous accessibility means people, even first-time digital users, have ample opportunity to familiarize themselves with the system, leading to more extensive adoption and comfort with digital transactions.

1. Reducing Burden on Bank Staff and Infrastructure:

• Since UPI transactions are automated and processed instantly, it reduces the workload on bank staff who would otherwise have to manage more transactions manually during working hours. Additionally, it reduces dependency on physical banking infrastructure, as UPI transactions occur entirely within the digital environment.

1. Global Competitive Edge:

• India’s 24/7 UPI payment system gives it an edge globally by setting a precedent for efficient and accessible digital payments. This innovation has not only revolutionized the domestic economy but has also drawn attention internationally as an effective model for real-time, always-on financial systems.

UPI’s 24/7 transaction capability has proven to be a critical asset, supporting economic growth, reducing dependency on cash, and providing users with unparalleled convenience and accessibility. This transformative feature continues to drive financial inclusion and economic resilience across the country.