New Delhi: Online payment solutions company Razorpay Software Pvt. Ltd will introduce unified payments interface (UPI) 2.0 on its platform in a phased manner over the next two months, with an eye on large merchants in the e-commerce segment.
Initially, 700 merchants will go live on UPI 2.0, which will gradually be available to more than 100,000 merchants, said Harshil Mathur, chief executive officer and co-founder at Razorpay. “We started testing UPI 2.0 on a pilot basis with 7-8 merchants the day National Payments Corporation of India (NPCI) launched it and have got positive responses. We are waiting for NPCI to allow us to roll it out for all merchants."
UPI is a payments system launched by NPCI, the umbrella organization for all retail payments in India, that facilitates instant fund transfer between two bank accounts on a mobile platform, without requiring any details of the beneficiary’s bank account.
On 17 August, NPCI launched an upgraded version of UPI after a delay of several months that, along with new features, also doubled the transaction transfer limit. Now, UPI users are allowed to transfer up to ₹ 2 lakh per transaction compared to ₹ 1 lakh earlier.
“With the doubling of the transaction limit, large e-commerce merchants with high value transactions who had not asked us to enable UPI have started to show interest in the payment system," said Mathur.
“We work with around 200 education institutes, which had not shown interest to integrate with UPI as the transaction value for them is high. Typically, school fees are somewhere around ₹ 50,000 to more than even ₹ 1 lakh. With UPI 2.0, this sector has also started to express interest in UPI," he added.
UPI 2.0 also includes an overdraft facility, which enables customers to link their overdraft account to UPI and carry out transactions instantly. The one-time mandate feature allows customers to pre-authorize a transaction and pay at a later date, while the invoice in the box feature allows customers to check the invoice sent by merchants prior to making a payment. The signed intent and QR feature enables customers to check the authenticity of merchants while scanning QR codes.
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Several other uses could have opened up if the “standing instruction" feature allowing recurring payments from the user’s bank account towards loan payment or bill payment after a specific interval, enabled by a one-time digital mandate, would have been introduced, but the response from merchants has been positive towards UPI 2.0, said Mathur.
Razorpay powers online payments for more than 100,000 businesses, including Ibibo, Yatra, Zomato, BookMyShow, IRCTC, Zoho and DSP BlackRock.
The company aims to increase its merchant count to 200,000 by the end of 2018 and impact 500 million end-consumers by 2020. It has clocked a growth rate of 30-35% month-on-month.
Under UPI, 405.87 million transactions amounting to ₹ 59,835.36 crore were carried out during September—a 30% jump over the 312.02 million transactions worth ₹ 54,212.26 crore in August.
UPI was launched in August 2016 with 21 banks. It is now offered by around 122 banks.