Digital payments in India – Part 2 – The vision for a cash-lite society
UPI in 2020
In our last blog we covered the reformation of the Indian economy with mobile payments, one thing’s for certain: India has paved the way for real-time-payments and the world is inspired.
2020 started on a good foot for transactions recorded on UPI. January 2020 saw a 7% increase in transaction-value compared to December 2019. Achieving INR 2.16 Trillion, UPI almost reached the value of transactions recorded on IMPS.
A little late to the party or fashionably late?
The UPI space is already overcrowded and the global giant PayPal is reportedly planning to enter the race with P2P payment service. With strict laws for data localization and legal norms by the government have made it difficult for global entrants, and we’re keen to see if PayPal makes it through the screening by NPCI and the central bank. Focused on enabling cross-border payments for e-commerce platforms and merchants, we’re eager to see how PayPal promotes P2P transactions against the existing players who have an established market share.
“UPI chalega nahi daudega”
Seeking to draw the next set of users NPCI recently launched their new Social Media campaign ‘UPI Chalega’, and here’s what we think, “Chalega nahi daudega”
Source: NPCI on Facebook
Our take on what the campaign showcases:
- The merchant acceptance, border-to-border
- The ease of interoperability
- Seamless usability
- The choice of payment for online transactions
- The adaptability
Focused on three aspects: easy, safe, and instant, the campaign is garnering a lot of attention with quirky video ads like the pickpocket film, which is our favourite. The videos capture most use-cases and are set to trigger an instant connection with the audience.
NPCI also launched a micro-site www.upichalega.com to earn its “Mutual funds sahi ha” moment. The site outlines the product features, FAQs and a partner spotlight for efficient onboarding of new users. Overall, the campaign leaves no stone unturned to highlight the great impact it’s made in the country.
In the next blog we cover all dynamics around P2M transactions on UPI and demystify if the credit and debit cards are here to stay.