The Unified Payments Interface (UPI) is a real-time payment system launched in India in 2016, allowing instant money transfers between bank accounts via mobile devices, including 24/7 accessibility. UPI was introduced to simplify digital payments and reduce reliance on cash, experiencing rapid growth attributed to factors like demonetization and increased smartphone usage. Its features include easy navigation, security enhancements, and innovations like autopay and offline transactions, demonstrating its evolution and potential for the future.

1. Unified Payments Interface

2. What is UPI?
● Unified Payments Interface, or UPI, as we like to call it, is a
real-time payment system developed by NPCI, launched in
2016.
● It allows instant money transfers between bank accounts via
mobile devices using a UPI ID or mobile number.
● It Instantly transfers money 24/7, including weekends and
holidays.
● It Works through Virtual Payment Addresses (VPAs), eliminating
the need for bank details.
● It Offers Quick Transactions and no transaction fees!
Every single of us uses UPI!

3. India Before UPI
● Online transfers required account numbers, IFSC
codes, and were limited to bank hours.
● Some transactions took hours or days to process,
causing delays.
● India was very cash-dependent, especially in
rural areas with limited digital payments.
● Many people were unbanked, with low digital
literacy and access to payment systems.
● Card and online transactions had fees, people
had to pay short fees to make even small
payments.

4. Why UPI?
● UPI was designed to make digital payments seamless and instant,
removing the complexities of traditional online banking.
● UPI aimed to reduce India’s reliance on cash and promote a digital
economy.
● UPI was created to provide a common platform where users could transfer
money across different banks without needing to know bank details.
● UPI was designed for 24/7 real-time money
transfers, overcoming the delays of
traditional systems like NEFT and RTGS,
which operated only during bank hours.

5. How UPI grew
UPI transactions were just at 1 lakh
crore in 2017. They went above 125
lakh crore in just 5 years!
In the year 2022-23, more than
₹5800 Crore worth of transactions
took place through BHIM UPI.

6. How UPI grew
How did UPI grow so suddenly and rapidly?
● The 2016 demonetization campaign led to a surge in digital transactions,
driving people to adopt UPI as a cashless alternative.
● UPI gained traction among merchants, from large retailers to small businesses,
enhancing its usability in everyday transactions.
● Integration with popular mobile payment apps like Google
Pay, PhonePe, and Paytm made UPI accessible and easy to
use for consumers.
● The increase in smartphone usage and internet
connectivity enabled more users to access UPI services.
● Strong security measures, including two-factor
authentication, built user trust in the system.
● Continuous updates, including features like UPI AutoPay,
UPI Lite, and linking credit cards, kept the platform relevant
and user-friendly.

7. Plus points of UPI
Why is UPI so good?
● UPI has a simple design which means easier navigation for everyone.
● UPI can perform instant money transfers available 24/7 without delays.
● Uses a UPI ID or mobile number instead of complex account info.
● Users can ink and manage several bank accounts in one app.
● Users can make payments anytime, anywhere, directly from their
smartphone.
● UPI enables users without
formal banking access to
engage in digital
transactions.

8. Evolution of UPI
Security Features
● Requires a Mobile PIN (MPIN) in
addition to the UPI ID for added
security.
● Instant notifications for every
transaction to detect
unauthorized activities.
● Allows transactions without
exposing bank account
numbers.
● Automatic logout after
inactivity to reduce
unauthorized access.
Innovations in UPI
● AutoPay:Automatic recurring
payments for bills.
● UPI Lite: Offline transactions
for small payments.
● Credit cards can be linked in
UPI for seamless and easier
payments.
● UPI now can facilitate
payments using voice
commands.

9. Future of UPI
● UPI has facilitated cross-border payments for international transactions
in some countries.
● Offline transactions will be possible, enabling payments without internet.
● Utilizing AI to analyze transactional data for better fraud prevention.
● Collaborations with global
payment platforms to
increase functionality.
● Campaigns to include
unbanked populations in
digital payments.
● Complying with changing
regulations to maintain
trust.

10. Arthaay Sawant
Harsh Rane
Siddhant Shah
Mandar Patil
Runali Pawar
Nandini Yeligeti
Thank you!