While UPI has grown in popularity since its inception in 2016, it has yet to reach rural areas where smartphone ownership is low and internet access is spotty. Volumes should increase as more low-cost handsets connect to the UPI system, promoting financial inclusion.
This could be India's Unified Payments Interface's next great step (UPI). Governor of the Reserve Bank of India Shaktikanta Das introduced UPI123Pay, a digital software that allows users of feature phones to send money, on Tuesday. They will be equipped to do almost everything that smartphone users can on this payment platform, with the exception of scan-and-pay. There is no need for an internet connection.
All that is required is a feature phone connected to a bank account, and funds can be transmitted to any other UPI user without the usage of a credit card.
This should significantly boost the use of India's proprietary platform for cashless transactions.
UPI transfers have already increased as a result of the pandemic, with over 4.5 billion worth over $8.3 trillion reported in February, up from just over 1.3 billion worth 2.2 trillion two years ago. The tally is expected to rise.
