As an Indian currently living in Canada for over 3 years, I can say that UPI is far superior compared to any of the payment methods offered in Canada. I feel very very proud of UPI.
@@mango-strawberry you should be fine with Cold here. It is bit of an issue for couple of month but after that, you will know what to do to keep your life normal. Canada is a very beautiful country, and cold should not be an excuse that stops you from visiting this country.
@hypertechcoffee it gets complicated for in-person transfer and there is always a charge at merchant account. Also, there is a security question and answer where you need to think about setting something less-childish. Sharing answers and the other party enter password is also time consuming. Plus there is a $1000 default limit on interac. There is also not guaranteed transfer to bank, you need to click on email which can possibly be forwarded to anyone and deposited money to any account.
Not gonna lie ,what I first thought UPI(Via-QR Code) like payment system was commonly in all developed nation but later I was baffled to know it's only unique to India. Now, I can't even imagine Payment without UPI.
i'd say QR payment is more common in the so-called "developing countries" than the developed countries. there's more and more countries following china's example, but i'd say india's has the best implementation from this video. many of the more recent QR payments comes from ASEAN countries, and they have a plan for a unified payment system.
@@PrograError Ofcourse, a payment system should be accessible to each and every person so a QR code way is the easiest and cheapest for any consumer and also seller
As an Indian, i just accepted UPI as a natural course of things. Your video puts it into perspective and makes me appreciate the genius of this system. Thank you
UPI transactions are available in 7 Counties so far, India, Bhutan, Nepal, Malaysia, Singapore, United Arab Emirates and France by cross border payment agreements.
@@jimmie3232 it will take time to implement it in france and Malaysia... As it is just recently announced... Their local Banks will take time to align and upgrade their systems and etc
Cashless economy is the most radical change I've witnessed in India i still remember "geniuses" arguing most Indians don't have bank account, small scale vendor's would be wiped but now even the smallest of shop's accepts UPI payment it's incredible how we've transformed.
The government and all institutions involved played a masterclass tbh lol I remember the government also launched this scheme or policy which had people from very lower income bracket making bank accounts right before launching UPI and stuff
@@rajatmond uh definitely not, UPI is accepted even at small shops in small towns in WB. Only a few shopkeepers I've seen refuse to allow UPI for payments below 100
UPI is a behemoth. It has giants like Mastercard and Visa scrambling for relevance, even going so far as lodging formal complaints against it. Furthermore, India just signed a MoU with France to accept UPI as a payment service. UPI is already available in Bhutan, UAE, Singapore. It is truly one of the best policies ever implemented on the nationwide scale.
UPI is available in 7 countries including India. India is also giving more importance to get MoUs signed with atleast 50 countries within 2025 and planning to replace SWIFT with UPI.
Hopefully. Mastercard and Visa will eventually be completely irrelevant. After what they've done to so many people over politics. They all deserve to go bankrupt.
UPI has literally transformed Indian society fundamentally, its like skipping the credit/debit card generation and directly leading to a well crafted digital payment which can be used anywhere, anytime. I am among those who are very conscious about privacy, fintech etc but after resisting myself for many years since the UPI was launched, I reluctantly used it during the covid lockdowns and never looked back, it saves so much time and I never had any stuck payments or glitches. This tech should be owned and operated by democratic states all across the world.
@@alexandrep4913 Obviously not specifically UPI, but every democratic government should have their version of UPI. Since this is like printing money, it shouldn't be left to private companies as it can be dangerous.
Once you start using UPI service there is absolutely no going back. Absolutely brilliant service. The people behind the service should get noble prize for economics.
But the UPI payment can be blocked by the service provider... How is that good? Knowing that you can be expelled from the UPI system if the authorities deemed you un deserving. UPI is good as a temporary solution... We need decentralised payment processing tech in the long run.
@@abi.hockeycop India has a robust judicial system. Authorities cannot arbitrarily exclude you from the service. Whether there should be centralised system or decentralised system than the video itself provides answer for your question - see the example of US it has a decentralised system. So I think UPI is a wonderful system. In fact it is the single most important thing after deregulation according to me.
@@itshawkeye9129 Truckers protest in Canada... Government blocked nearly one million bank accounts of their own citizens... & West is the most liberal & democratic... What makes you think that it can't happen in India? You're not thinking critically.
As an Indian who lived in USA and currently in Canada I can appreciate the ease of UPI.. Have used both Zelle and Interac, but zelle is not there with every bank, and interac still needs a password to be shared for first time..
@@shawa666 faster wins always no matter how secure or good quality it is but this cannot beat fast & efficient system. That's how Chinese are beating the world in every sector.
UPI is life changing. Believe me when I say that, no cash no major extra processing fees like cards and it doesn’t cost anything to set up for users so even small fruit vendors have these things now.
This video misses out a lot of things like. 1. Offline UPI transaction (ussd code based transactions) 2. Aadhar enabled payment system which allows even the least tech savvy person to withdraw money from local shops. 3. NPCI's plans for taking a small royalty fees from payment aggregator apps and banks because these apps are making huge profits thanks to UPI. Latest reports indicating that government might not remove MDR and keep making losses by making up for those losses by printing less money, reducing the money spent on other digital and semi digital services like ATM machines,debit cards transactions etc. 4. Ongoing talks about bringing credit card's facilities into the UPI. 5. Pilot project of using UPI at atms to transact money
I'm curious. Are USSD-based offline transactions also included as a feature in your mobile payment apps? What I mean is, do most apps still need an Internet connections to proceed with simple transactions? Here in my country, the leading digital payment processor do support USSD-based transactions but hardly anyone uses or even knows about it. The clunky experience without an app creates unnecessary friction wherein it's faster and simpler to transact with physical cash when Internet connection is not readily available.
@@unhash631 to facilitate upi transaction, you just enter the ussd code from your registered mobile number and then enter your payment receivers mobile number and then the amount after that you enter your mpin/ password and vola you have made your payment. This allows UPI payments by simple feature phones. Although it's a bit rough compared to UPI apps I am curious what payment system do you use. Although due to high quality mobile internet and feature phones getting replaced by smartphones very few people use this ussd based system, but still this system comes in handy. I for example have used this system multiple times.
@@Parrot3054 I see. So it's the same clunky experience with us. I actually thought your USSD system became a huge factor for citizens to switch to digital payments. Is data really that cheap that most people in India always have a mobile Internet connection? Here, a lot of people are hesitant to fully transact digitally because mobile Internet is quite pricey. Nobody would subscribe to a mobile Internet promo just to pay when you already have cash on hand.
Advantages of zero MDR for small transaction has led to small transaction in change being paid almost entirely by UPI in atleast cities in India. Removes the hassle of carrying cash and finding change always.
Plus UPI should never been seen as a profit making operation rather a fundamental national infrastructure that is funded by taxpayers and keep the 0 MDR permanently
WhatsApp payment system was delayed due to the fact that Facebook/Meta was not willing to set up local offices and store data locally within India as mandated by RBI - Indian central bank. UPI also sets the stage for digital Rupee - which will be a game changer in finance
I still confuse between imps, rtgs, neft as I have rarely used them. I can guarantee that those will surely be bothersome to young generation as we don't need to use them for transaction less than 1 lakh
Last year I migrated to UK from India. Here everyone uses contactless cards for payments. I feel like I have came back in time 😂😂. Keep in mind that many western news agencies thinks that UK is world leader in Fintech but I think they haven't researched much into India and China's world class QR based payment system.
Living in New Delhi/Noida. Last time I used cash for daily use was 2 months ago when I had to pay a rickshaw 10 rupees. UPI is the best thing that happened to us Indians.
By Way of Deception Thou Shalt Do War... You've been named viper. I figure I ought to explain myself for the benefit of the uninitiated, this supposed Indian whom just like 99.999% of comments here simply loves and adores his UPI for some unknown reason has the Israeli Mossad logo as his pfp. Their motto is "By Way of Deception Thou Shalt Do War", keep that in mind as you read the post beside it. Why would an Indian on youtube adore a foreign intelligence service?
When the BJP government decided to 'digitalize' the Indian economy by 2019, many of its opposition leaders, notably the Congress MP P. Chidambaran (who had been previously arrested in a corruption scandal) ridiculed the initiative by asking the government how they intended to introduce a digital payment system to poor farmers and street vendors. 3 years later. Lo and Behold! Now nearly every small-time business owner such as a Pharmacist, and even Rickshaw and Cab drivers do online transactions through UPI. The transactions are smooth and affected only by network malfunctions.
Huge learning for all of us. Just because some facts appears true (what mp said) does not mean it the complete truth. Many other factors (pm encouraging more people open Bank accounts) and hidden agendas (people who will get negatively affected due to a transparent system) are in play. So we should always look at the larger picture. Hope Shri. Modi will continue to help us understand by showing us these things are possible (UPI).
I don't even keep a ₹10 note in my pocket and some of the elderly shopkeepers taunt me for that😂. Seriously. UPI is the best. As I said, I always make payments with UPI. Cash is like a burden accompanying me all the time.
I think it wouldn't have worked as well without Central govt making 0 balance accounts a possibility. It takes a big hit on national budget but it allowed everyone to have a bank account, cutting middlemen in most welfare schemes who used to embezzle the money, most likely this saved government more money than they were spending compensating for embezzlement. And it allowed even poorest of folks to use UPI
The middlemen are still there. They have switched to prepaid service sort of setting. You pay them money and then they will give your names for those schemes. The middleman are your ward memebers, panchayat samiti members, i.e. anyone who gives the authentication that you are eligible for the benefits.
The middlemen are still there. They have switched to prepaid service sort of setting. You pay them money and then they will give your names for those schemes. The middleman are your ward memebers, panchayat samiti members, i.e. anyone who gives the authentication that you are eligible for the benefits.
No matter how much people cry over demonitization but it was the major reason why UPI came. It paved the way for it. Government intentionally reduced money in ATM and started printing less bank notes. This forced people to go toward online payments since they were not getting enough banknotes for their transactions and ATM running dry. It was all planned. there were problems with demonitization drive but it was important
Indeed it was a dangerous step but a necessary one, I thought it would affect BJP's vote bank and might loose next election but gladly people were smart and thought clearly for the betterment of the nation
Despite this according to some reports cash use transactions are at all time high and UPI has made no difference to the way scamsters/frauds operate. But for me it's been a blessing with no tension of carrying wallet.
@@vivekramachandran2103 I think you meant to say it was, yes cash transactions were even high after demonitization. But that did change and current reports should be different than what it was just few months or a year after that
@@vivekramachandran2103 Because government won't take action unless needed. Now with UPI everything is under surveillance so whenever govt wants to crack down on someone it will.
Covid was the major reason and not demonitization. Also, ofcourse people cried at that time. I mean even you would have cried if your mother or father died in that demonitization drive. The lockdown of more than 1 year is what caused people to shift to upi. Also, don't forget the fact that cash uses is also increased.
When the idea of UPI was put forward in the Indian parliament in 2016 by the ruling party the opposing party made fun of it. They said that Indians are illiterate, dumb people who won't be able to use it, they also said that Indian infrastructure wouldn't be able to handle it (they were the ruling party for nearly 6 decades since Indian independence in 1947). There were articles in the times magazine, new York Times, Washington Post etc, making fun of UPI (in the same way which they made fun of Indian space program). The main contributors of the success of UPI are: 1. The ruling party (BJP) 2. Network service provider JIO 3. The citizens of India
@@krushna4181 I agree. The opposition needs to introspect within. It will be good for democracy. In a democracy the monopoly of a single party isn't good.
@@sumitagarwalsmart Why? Why ask a complete stranger to stop doing something that doesn't hurt anybody and is harmless fun? More so when it isn't directed to you.
The availability of UPI users down to remote areas anyone with a phone is crazy! You can pay even offline when internet is not working! Not only UPI, but credit cards surged after pandemic. People are availing all the benefits to a point the revenue model of banks and took a hit maintaining services such as lounge access at airports and thus cut down some. Even if other players vanish, UPI will stay! Also UPI is super easy to use just scan the code or enter ID and pay. Surely made life easier. For perspective, India has upwards of 1.4 billion people and it’s not easy to find a unified solution affecting such a large demography. They can easily make it profitable by just taking ₹10 monthly from everyone as an operating charges just like we have to pay annual maintenance charges for debit cards close to ₹150 yearly. No one will mind paying measly ₹10 per month!
Brazil implemented something similar as UPI called Pix 2 years ago, but it is way more integrated and simple, people and commerces widely addopted it surprisingly quickly (not to mention the rush that all banks, be traditional or digital did to get preference on peoples keys, sometimes even offering prizes) without any governamnental incentive or intervention, and yes, by standart Pix doesn't have any fee, independently of the bank or who's the benefetiary, I reccomend you taking a look or perhaps even making a video about it, also our banking system is quite modern and robust, there is a ton of apps that their main focus is credit card w/ a simple money account or superapps that even have store integrated within (and usually offers cashbacks for outside apps). I forgot to mention that cuz Pix was implemented by Brazil's Central Bank, there was no whining from banks about "oh no I'm not getting fees this is so wrong, hOW Im GoNNa SurViVe", mostly because digital banks came before and already didn't charged for the previous method of intrabank transfer (known as DOC and TED) like traditional banks did.
I was also thinking about Pix and its similarities with UPI. Here in Chile we still don't have something like that because direct bank transfers are immediate and free in the system (with some exceptions) and the state-owned bank BancoEstado has accounts for 13 of the 19 million inhabitants with CuentaRUT (debit account with Visa card), in which every account number is the same as the national identification number (RUN/RUT); which was literally a silver bullet when the pandemic hit the country and the government needed to disburse money to support both people and the economy. While we have some fintech apps that are trying to promote QR payments (Mach, Tenpo, Mercado Pago, Fpay, etc), almost all non-cash payments are either though debit/credit cards due to the large presence of the Transbank payment network (recently with new competition like Redelcom, Sumup, Getnet, etc) or direct bank transfers. Now this year the local Central Bank wants to reign over all this systems in two ways: Improve the immediate transfer system to make it safer, and the idea of a CBDC to try to facilitate small payments not covered with either bank transfers or card/QR payments.
It is well known in the industry that Pix is largely copied/ inspired by UPI only. Indians have a tendency to offer their best for free for the good of the world
You know what's more interesting? Even the so-called Tech-hub of the world, the Silicon Valley in the USA, has no real challenger to this UPI system. Actually, Google had been lobbying in US Congress to pass a bill to make a system like UPI. FYI, Google has tested this revolutionary UPI in India and successfully operates UPI based app Google Pay (formerly Google Tez). Had UPI been a private company, the valuation of UPI would have crossed $100 Billion (a hectocorn) and would have swept this whole world. I still don't get why old-school payment systems like PayPal or even Chime & Revolut are still valued so high.
@Potassium Syndicate India won't. It has never asserted itself in the past, and will never do in the future. There's huge insecurity amongst Indians, they aren't confident at all about themselves.
Wait for couple of years or so and see it's international transaction capabilities as well. The advantage it has over other similar services is that it's security features which cannot be hindered easily because it's directly Bank to bank and the inbetween system is not easy to crack
UPI is a wonder. It allowed anyone with a bank account and smartphone to send and receive money. And it is instant transfer. When I saw small vegetable vendors and shops with QR code, I was surprised and proud when I came from Dubai after a while. The progress was amazing. Almost made everyone to do cashless transaction..
Another benefit of upi is that now it is very easy to start an online business because you can easily recieve payment with your code. Even TH-camrs in India are providing upi links instead of going through youtube payment that keeps 30%
It has really changed lives here. From running to banks for everything, to using time taking internet banking to transferring money in 4-5 secs, it has revolutionised cash scene.
Great video. Thailand has something similar called PromptPay based on mobile phone numbers which makes it easy to facilitate social commerce transactions. In just a few years it's become the largest payment platform here.
its diffrent, UPI enables to deduct or transfer money directly to your bank acc, prompt pay ask to transfer money to its wallet first then to who you want to give to
UPI in india is directly linked to bank account you can just need phone number to directly tranfer money to any account without any fees. It's so convenient it's been 3 years i have not seen a bank note.
And UPI is free to use for consumers and merchants as of now, with a maintenance spending of around $ 200-250 million or around ₹ 2000 Crore per annum by Government of Bharat.
Woah, that's expensive. How come this is the cost of running a few shitty servers ? I am sure they are pocketing the remaining 199.5 mullion dollars and running this on total 500K $s as server cost !
Thanks for producing such an in-depth and resourceful video. It is interesting to learn the roots of UPI go as far back as 2005. One key aspect of UPI growth and acceptance is the phone linked QR code based quick payment acceptance that made life easier for merchants who otherwise would have to go through a lengthy registration process before being on boarded to a payment app.
I think you still missed a lot of the openness of UPI like if you have a bank account you already have a UPI Id you don't have to do anything it takes 5 minutes on your phone with no requirements to do it has a lot of things which I doubt are possible with other such networks like on bank can have multiple UPI IDs on many different apps and other such things.Plus you failed to cover UPI 2.0
In December 2018, Union minister Arun Jaitley had informed Rajya Sabha that four people had died 'during the period of demonetisation'. Yet it finds mention in the video about UPI, something completely unrelated.
That's because it's India. International channels can't let go of this negative image completely,hence even in most unrelated videos they need to mention something definitely negative.
In my opinion,UPI was the most revolutionary step taken for public interest after article 370 abrogation by the present BJP govt soon after the availability of cheap mobile internet connections....
And also there will no transactions charges . It helps people to save a lot of money when shop keeper says that they have change for a particular product or sometimes if a product is 297 rupees most people just pay 300 rupees and don't care about those 3 rupees but with UPI u can pay the exact amount without the fear of the shopkeeper not having the required change.
We have a similar method of payment in Brazil called PIX. It's launch was quite game-changing, and it's practically impossible to remember how was life before it.
Upi is not an app. It's a payment system that is completely free and I don't need to have PIX on my phone to pay you. If you have google pay and I don't, even that's fine. Whatever your payment system, my UPI can pay you without my having to download your app.
For IMPS you only need the recipient account number and their bank IFSC code. There is a configurable cool down period on adding the recipient account. When I first used this system in 2012, it was pretty far ahead of what was available in the US. Bank account to bank account transactions in the US were pretty archaic at the time and not easy to set up.
i was 9yrs old in 2012, can you tell me why was it difficult to transfer money from one acc to other despite we had everything internet and advanced computers and all
@@oksowhat You can have all sorts of supercomputers at your disposal it doesn't matter. As long as banks don't adopt common standards and APIs, they won't be able communicate balances to enable the money transfer.
The US is not 20 years behind, stop acting like you know what you're talking about. USA has had these kinds of apps for a long time. Don't make things up.
Been using UPI for couples of years since then I never carried a single rupee because of ease of payment from this fantastic payment system....kudos to developers 👍
RuPay + UPI were very well thought, far sighted and timely executed. I can't think of any other decision that can parallel this decision in both planning and implementation
Excellent overview video! I'm quite impressed with the depth it went into; despite being quite familiar with the history, even I learned some interesting things. Thank you. One thing: IMPS and the TM in PayTM are initialisms, not acronyms-they're pronounced by its individual letters instead of as a word-while BHIM is an acronym (pronounced "beam") and not an initialism lol. Also, _routing_ is pronounced identically to "rooting" when it's an inflection of the word _route;_ the way you're pronouncing it, it is an inflection of the word _rout,_ which means a groove that is cut into wood.
UPI has allowed every capable (educated enough to use smartphone) to send money and even an illiterate to receive money without much hassle and zero fees. So as Indians, we do love UPI. But One problematic aspect is zero MDR and banks are supposed to foot the bill for infrastructure. This may lead to less-innovation by banks and private players and possible huge chaos when MDR status changes.
If MDR will be going to charge on UPI transaction it will be the death of cashless ecosystem in india.. Most of retailers have less than 5% margin non their products . With MRP system in place and plus added burden of MDR on merchants . UPI going to face same fate as faced by card payment system in india in past..
@@Traderking1990 All HSR systems are like that. India must move towards a future where HSR services are operated competitively by private players with the government mandating operations at set conditions.
It is good to see that developing economies are embracing fintech payments. I was always impressed by how China leapfrogged past the credit phase and straight into for all intensive purposes a cashless society. I’m curious how far into this India is at, in Indonesia this has been the direction for the last 5+ years and the advent of wechat like local super apps are daily drivers for many. It’s ironic that North America and Europe are still stuck with cheques
Hey guys, where is the data showing India’s digital transaction volume is higher than China’s? Best I could find was India’s 2021 digital payment volume over UPI was 22 billion transactions and 2022 is standing at 45 billion so maybe 90 billion by December 2022. China’s digital payment volume in 2018 was 532 billion transactions on mobile alone, granted that accounts for 80% of China’s transaction volume. India if following the data I could find will only be at transaction volume that is 16% of China’s 2018 volume. Please point me to the data you are basing your comments on as I would like to analyse this and get myself better acquainted with Indians growth.
Best part is that you don't have a monopoly app here. There are big players too but govt. Is going to cap single player market share at thirty percent. There are dozens of apps you can choose from, you can switch apps any time or keep multiple UPI apps. Most people have more than one UPI apps on their phone.
In Thailand we have "Prompt Pay" implemented in 2018 by Thailand central bank as well and the cost is born by the central bank, which does not lose money as it prints less paper money.
@@Parrot3054 he said Brazil has PIX and they have used it. So he will obviously call it best 🤷. We should be proud on NCPI but shouldn't drag like this. It really feels slight cringe.
Last month, I had a realisation. I noticed cash in my wallet which I had completely forgotten about. I was amazed to realise that I didn't once had to use cash for even once. UPI has penetrated Indian financial system to its core.
It also works because the service is seamless with near zero chance of error or glitches. Its very safe and the interface is vry easy even for someone illiterate
Thanks for coverage. Few points to note, in rural areas of India, you should keep cash always as a backup. In deep south , I dealt with a hospital, who would only accept cash. Note to self: Upgrade from iPhone6 since payments apps do not work in iPhone 6 !
Did you know you can go in a small shop without anything in pocket... and you just put your finger on a tiny fingerprint scanner and take out cash from you bank directly... You can roam anywhere with empty pockets .. feels nice
In Thailand we have "Prompt Pay" implemented in 2018 by Thailand central bank as well and the cost is born by the central bank, which does not lose money as it prints less paper money.
@@ArawnOfAnnwn how, Ali pay is a wallet and at best is comparable to old Paytm system. However since china is a much more digitised society more people adopted it but by no means Ali pay as a system is better than UPI.
At the moment there is no system which comes closer to UPI when it comes to security and simplicity at the same time not even China. I'm not exaggerating, just stating the fact.
Western media will only show slums in India. India has already developed many Cyber Cities but I don't think Western media has covered that too. India is already the 5th largest economy in the world with a GDP of $3.53 trillion.
After UPI, we are moving to e currency (cryptocurrency) from Reserve Bank of India (RBI), so now no bank account would be required, direct currency deposit and withdrawal from our wallet in RBI. Future looks bright, Indian system shall be adopted worldwide for easy payment systems, no need to carry physical wallet
I come from a tier 3 city and UPI is available at every shop, fruit and vegetable vendors. UPI has literally revolutionized the payment system. This is the biggest step towards digitization of India.
India is a cash based country. Due to this a large number of people and businesses don't pay tax and show income. We have a large peaceful population as well still refuse to pay taxes. So India will sooner or later will be a country with almost 80% digital pay. It's not what we all wanted but needed so more people pax taxes.
In Lucknow when you visit the old Lucknow city where 80% peaceful population lives, NOT A SINGLE shop accepts digital payments, you're screwed if you dont carry cash and where that tax evasion cash goes only allah knows.
@@ShinAkuma unfortunately when in power, the peaceful population puts taxes on the non-peacefuls like us, called jizya. it is part of their belief system to discriminate against non-peacefuls.
Maybe India should levy more direct taxes instead of relying on GST and other indirect consumption taxes that disproportionately effect the poor and costs everybody, the private sector and state in bureaucratic costs in implementing. Indirect taxes raise the cost of entry for any given good it is levied on, compounds inflation and dampens consumer demand.
You said 100 billion dollars in 2021 ,,😂😂... It's 100 billion dollars for a month dude with just UPI. AND it clocked 1 trillion+ dollar fro financial year 2021-2022
I got a Tire shop in India ..nowdays 40- 50% sale come through UPI .. And i can use the money on same day because it hit my bank instant and help me to find a better ROI... And u can athun different employees who can recieve the confirmation thought app.
I did whole trip from 1 state to another without carrying wallet because I forgot it,for 10 days....yes flight tickets and id were verified through phone only....amazing
People need to understand the momentous task of facilitating real time transactions for a country of 1.3 billion people. The digital infrastructure, online traffic, server load are only few of the things you need to maintain in this system. UPI is a 21st century's great success.
A few years back withdrawing money from ATM would be an ordeal in India but not anymore. Of late I see no queues at ATMs. This was made possible due to NEFT, IMPS and UPI. But UPI has revolutionized e payment system thanks to it's user-friendliness. One more factor that contributed to this is widely available telecom network with dirt cheap tariffs.
While cash still is the most convenient form of transaction, UPI is not far off. It has certain advantages of its own, especially quick online purchase and skipping long atm lines in the hit weather. On an average i complete to something around 40-50 UPI transactions per month.
WhatsApp didn't get prior approval because they refused to follow Indian laws . So you could ask WhatsApp why was that before dumping blame on Indian Gov blindly.
Would be curious to see a video on FedNow - potentially revolutionary or not a major threat to the private FinTech and For Profit credit card industry?
It's great for Indians but not for foreigners as it doesn't work with foreign banks and ccards. Thus still prefer cash when visiting India but definitely appreciated retailers willing to use ccard machines for bigger purchases as there weren't many willing to do so. It literally defined where I made my purchases.
I'm still surprised that NFC payments hasn't made its way into the UPI ecosystem, and NFC is missing from like 99% devices in India. Seems like a natural thing to do.
The amount of extra costs is the reason You need specialized devices that accept nfc payments instead of a simple printed qr code on the shopkeeper's end (yes, this is a large hurdle for many vendors still) As well as nfc supported devices on the user end
@@SpricesExist Of course theres a cost to everything but given the prevalence of digital economy in India I'm still disappointed that theres not a push for nfc devices. Rarely any smartphone in India has nfc. But it used to not be the case near about 2014s when mobile phones were starting to have nfc. Phone manufacturers have dropped the Idea since then.
@@sumansaha295 thinking about this a bit more, I realized you simply cannot whatsapp message an nfc pay point like you can a upi qr code You also cannot make or recieve nfc payments over sms (important in rural areas) The shopkeeper needs to take out the nfc payment device so you can put your phone over it to pay while they can put as many qr code printouts as they want on their wall It's simply an inferior technology in almost every way I can think of except maybe saving 5-6 seconds sometimes (not in normal retail stores, just trains or malls)
@@SpricesExist nfc is needed for public services, it doesnt provide much advantage for your neighborhood shopkeeper bill payments. Its obviously a better technology considering nfc is a REAL communication protocol unlike a qr code. Where transactions are more or less bound by human trust/error.
I don't remember going to bank or ATM in last 2 and half year. Even small street vendors in my tier 3 city has UPI scan codes. This has made cash almost unnecessary.
Me as an Indian, I stopped carring cash......for last 2 years I haven't drawn cash from an ATM. UPI has spoiled us.
New world order
True
I keep a bit of cash like 200 to 400 rest all upi
@@M3ganwillslay 10k?!
Why is whatsapp not used more often to pay ?
As an Indian currently living in Canada for over 3 years, I can say that UPI is far superior compared to any of the payment methods offered in Canada. I feel very very proud of UPI.
Not related but how do you handle the Canadian cold?
@@mango-strawberry you should be fine with Cold here. It is bit of an issue for couple of month but after that, you will know what to do to keep your life normal. Canada is a very beautiful country, and cold should not be an excuse that stops you from visiting this country.
@@valanikevin I see I see. Always wanted to knew how my fellow Indians handle the cold there. Thanks for replying bud. :-)
@hypertechcoffee it gets complicated for in-person transfer and there is always a charge at merchant account. Also, there is a security question and answer where you need to think about setting something less-childish. Sharing answers and the other party enter password is also time consuming. Plus there is a $1000 default limit on interac. There is also not guaranteed transfer to bank, you need to click on email which can possibly be forwarded to anyone and deposited money to any account.
Y... U didn't work on it
Not gonna lie ,what I first thought UPI(Via-QR Code) like payment system was commonly in all developed nation but later I was baffled to know it's only unique to India. Now, I can't even imagine Payment without UPI.
Yup it's just soo smooth
i'd say QR payment is more common in the so-called "developing countries" than the developed countries. there's more and more countries following china's example, but i'd say india's has the best implementation from this video.
many of the more recent QR payments comes from ASEAN countries, and they have a plan for a unified payment system.
@@PrograError Ofcourse, a payment system should be accessible to each and every person so a QR code way is the easiest and cheapest for any consumer and also seller
Exactly same with me
Actually we have that in Portugal for years, its MBWay.
As an Indian, i just accepted UPI as a natural course of things. Your video puts it into perspective and makes me appreciate the genius of this system. Thank you
Not natural, prearranged by international agreement.
UPI eases majority of small scale of business and also creating Fin-Tech Unicorns, our Govt is revolutionary for implementing it 🔥
That's the indian perspective
If foreigner said it's good than it's good
Enough
@@vikashmishra4353 you are so smart
@@vikashmishra4353If it's that good why didn't foreigner adopted it yet.
You should get an award for putting down India by making things up.
UPI transactions are available in 7 Counties so far, India, Bhutan, Nepal, Malaysia, Singapore, United Arab Emirates and France by cross border payment agreements.
Not yet in Malaysia
@@venkats3349 O, yes it is available in Malaysia too, according to "Wikipedia".
@@jimmie3232 it will take time to implement it in france and Malaysia... As it is just recently announced... Their local Banks will take time to align and upgrade their systems and etc
It is not available for local population of Malaysia, it's for those Indians living in Malaysia and want to send money to India as remittance.
@@kanekiken2002 ohh so when it'll be available for the local population?
Cashless economy is the most radical change I've witnessed in India i still remember "geniuses" arguing most Indians don't have bank account, small scale vendor's would be wiped but now even the smallest of shop's accepts UPI payment it's incredible how we've transformed.
those "geniuses" are paid to only point out the problems
Post 2014 those shitty geniuses are NOWHERE to be seen..
The government and all institutions involved played a masterclass tbh lol I remember the government also launched this scheme or policy which had people from very lower income bracket making bank accounts right before launching UPI and stuff
Not in all states. I think politics has a role here. West Bengal for example, is yet to adopt UPI for small payments.
@@rajatmond uh definitely not, UPI is accepted even at small shops in small towns in WB. Only a few shopkeepers I've seen refuse to allow UPI for payments below 100
UPI is a behemoth. It has giants like Mastercard and Visa scrambling for relevance, even going so far as lodging formal complaints against it.
Furthermore, India just signed a MoU with France to accept UPI as a payment service. UPI is already available in Bhutan, UAE, Singapore.
It is truly one of the best policies ever implemented on the nationwide scale.
UPI is available in 7 countries including India. India is also giving more importance to get MoUs signed with atleast 50 countries within 2025 and planning to replace SWIFT with UPI.
@@krushna4181 Now that would be revolutionary!
In France too
Man the convenience that UPI provides is just awesome 😋, just can't live without it
Hopefully. Mastercard and Visa will eventually be completely irrelevant. After what they've done to so many people over politics. They all deserve to go bankrupt.
UPI has literally transformed Indian society fundamentally, its like skipping the credit/debit card generation and directly leading to a well crafted digital payment which can be used anywhere, anytime. I am among those who are very conscious about privacy, fintech etc but after resisting myself for many years since the UPI was launched, I reluctantly used it during the covid lockdowns and never looked back, it saves so much time and I never had any stuck payments or glitches. This tech should be owned and operated by democratic states all across the world.
@@alexandrep4913 Obviously not specifically UPI, but every democratic government should have their version of UPI. Since this is like printing money, it shouldn't be left to private companies as it can be dangerous.
@@M3ganwillslay All are nations that have either significant Indian diasporas or strong ties to the Indian govt.
@@alexanderphilip1809 that's how businesses work . How old are u ?
@@alexandrep4913 Even France has allowed UPI and Rupay into their countries.
So you basically gave into the spy network?
Once you start using UPI service there is absolutely no going back. Absolutely brilliant service. The people behind the service should get noble prize for economics.
But the UPI payment can be blocked by the service provider... How is that good? Knowing that you can be expelled from the UPI system if the authorities deemed you un deserving.
UPI is good as a temporary solution... We need decentralised payment processing tech in the long run.
@@abi.hockeycop u mean crypto?
@@abi.hockeycop India has a robust judicial system. Authorities cannot arbitrarily exclude you from the service. Whether there should be centralised system or decentralised system than the video itself provides answer for your question - see the example of US it has a decentralised system. So I think UPI is a wonderful system. In fact it is the single most important thing after deregulation according to me.
@@abi.hockeycop now this is just being paranoid.....
@@itshawkeye9129
Truckers protest in Canada... Government blocked nearly one million bank accounts of their own citizens... & West is the most liberal & democratic... What makes you think that it can't happen in India?
You're not thinking critically.
As an Indian who lived in USA and currently in Canada I can appreciate the ease of UPI.. Have used both Zelle and Interac, but zelle is not there with every bank, and interac still needs a password to be shared for first time..
Canadian, I think we'll keep the password for cash tranfers between particulars.
@@shawa666 faster wins always no matter how secure or good quality it is but this cannot beat fast & efficient system.
That's how Chinese are beating the world in every sector.
@fgfg dfgdfg not now but definitely in upcoming 1or 2 years. Since government of India aggressively promoting with foreign countries.
@fgfg dfgdfg not available there
@fgfg dfgdfg No.
UPI is life changing. Believe me when I say that, no cash no major extra processing fees like cards and it doesn’t cost anything to set up for users so even small fruit vendors have these things now.
This video misses out a lot of things like.
1. Offline UPI transaction (ussd code based transactions)
2. Aadhar enabled payment system which allows even the least tech savvy person to withdraw money from local shops.
3. NPCI's plans for taking a small royalty fees from payment aggregator apps and banks because these apps are making huge profits thanks to UPI.
Latest reports indicating that government might not remove MDR and keep making losses by making up for those losses by printing less money, reducing the money spent on other digital and semi digital services like ATM machines,debit cards transactions etc.
4. Ongoing talks about bringing credit card's facilities into the UPI.
5. Pilot project of using UPI at atms to transact money
I'm curious. Are USSD-based offline transactions also included as a feature in your mobile payment apps? What I mean is, do most apps still need an Internet connections to proceed with simple transactions? Here in my country, the leading digital payment processor do support USSD-based transactions but hardly anyone uses or even knows about it. The clunky experience without an app creates unnecessary friction wherein it's faster and simpler to transact with physical cash when Internet connection is not readily available.
@@unhash631 to facilitate upi transaction, you just enter the ussd code from your registered mobile number and then enter your payment receivers mobile number and then the amount after that you enter your mpin/ password and vola you have made your payment.
This allows UPI payments by simple feature phones. Although it's a bit rough compared to UPI apps
I am curious what payment system do you use.
Although due to high quality mobile internet and feature phones getting replaced by smartphones very few people use this ussd based system, but still this system comes in handy.
I for example have used this system multiple times.
@@Parrot3054 i ve used this too when my number linked with bank was in basic phone. Its a bit hassle compared to upi app but this thing works.
They already started working on tokenisation of Debit/ credit card
@@Parrot3054 I see. So it's the same clunky experience with us. I actually thought your USSD system became a huge factor for citizens to switch to digital payments. Is data really that cheap that most people in India always have a mobile Internet connection? Here, a lot of people are hesitant to fully transact digitally because mobile Internet is quite pricey. Nobody would subscribe to a mobile Internet promo just to pay when you already have cash on hand.
Nice! Last time I've heard about this was about 10 years ago in a payment conference in Mumbai, glad India finally made it.
India's e-commerce market gonna touch $1trillion in value by 2027-28 all thanks to UPI
It was made in 2016..it time for growth and environment
What did you think of it back then?
@@FunnyVideo360days the idea came in 2009. Work started in 2011. Work completed in 2015. Launched in 2016. Now its booming.
@@kamalkumar7978 thanks for the information
Advantages of zero MDR for small transaction has led to small transaction in change being paid almost entirely by UPI in atleast cities in India. Removes the hassle of carrying cash and finding change always.
Removes the hassle of you being able to control your cash as well. This isn't "Indian", this is happening worldwide.
Plus UPI should never been seen as a profit making operation rather a fundamental national infrastructure that is funded by taxpayers and keep the 0 MDR permanently
@@thursoberwick1948 Stop being paranoid
@@nou4605 It's fact, not paranoia.
@@nou4605Happening in 120 countries. Coincidence? You think it is.
I can’t remember how many times I went to a shopkeeper with 500 rs and being told that they don’t have change and I have to do UPI.
WhatsApp payment system was delayed due to the fact that Facebook/Meta was not willing to set up local offices and store data locally within India as mandated by RBI - Indian central bank.
UPI also sets the stage for digital Rupee - which will be a game changer in finance
Ahh crypto rupee. We don't need that. Bitcoin ftw.
@@mango-strawberry it's just CBDC... it's literally planned to be 1:1 IRL cash
I have forgotten my ATM pin...😂😂
Same lmao 😅
Kek u aren't alone
Me too
I have forgotten my ATM pin , account number too just using upi ..... Linked account
same here too 😄😄
As an Indian, I had no idea what imps was but use UPI everyday. Very informative, great video!
You didn't know imps ? u must have been living under a rock then!
@@manh9105 IMPS is not as that popular as one might assume. People used NEFT , even RTGS in the 2010s.
@@manh9105 no. I only used NEFT and RTGS. I had no reason to use IMPS. Even RTGS is fast enough one everything is setup.
I still confuse between imps, rtgs, neft as I have rarely used them. I can guarantee that those will surely be bothersome to young generation as we don't need to use them for transaction less than 1 lakh
@Indians are Idiots upi is an api which uses imps system.
Lol I am a college student and literally all my payments whether be it bills or shopping are done through UPI. It's a blessing indeed!
Last year I migrated to UK from India. Here everyone uses contactless cards for payments. I feel like I have came back in time 😂😂.
Keep in mind that many western news agencies thinks that UK is world leader in Fintech but I think they haven't researched much into India and China's world class QR based payment system.
Been using UPI for couple of years now. Every tiny vendor has a QR code now in the city I live. Hopefully it will spread to all corners of the country
Living in New Delhi/Noida. Last time I used cash for daily use was 2 months ago when I had to pay a rickshaw 10 rupees. UPI is the best thing that happened to us Indians.
Yaar 10 rupay?
Thoda jyada de deta
Rickshaw wale ki jaan lega kya?
We Indians cant imagine life without UPI now😁 handling cash looks soo outdated.
Hope UPI goes global, to make worldwide payments smoother✌️
Yah bro😁😁..... Last week pan shop guy forced me to do upi for 7 rs of tea
@@veerendrakumarmeka3181 bhai pura sahi yaar
Every payment which requires change has been made through UPI by me
By Way of Deception Thou Shalt Do War... You've been named viper. I figure I ought to explain myself for the benefit of the uninitiated, this supposed Indian whom just like 99.999% of comments here simply loves and adores his UPI for some unknown reason has the Israeli Mossad logo as his pfp. Their motto is "By Way of Deception Thou Shalt Do War", keep that in mind as you read the post beside it. Why would an Indian on youtube adore a foreign intelligence service?
When the BJP government decided to 'digitalize' the Indian economy by 2019, many of its opposition leaders, notably the Congress MP P. Chidambaran (who had been previously arrested in a corruption scandal) ridiculed the initiative by asking the government how they intended to introduce a digital payment system to poor farmers and street vendors.
3 years later. Lo and Behold! Now nearly every small-time business owner such as a Pharmacist, and even Rickshaw and Cab drivers do online transactions through UPI. The transactions are smooth and affected only by network malfunctions.
Huge learning for all of us. Just because some facts appears true (what mp said) does not mean it the complete truth. Many other factors (pm encouraging more people open Bank accounts) and hidden agendas (people who will get negatively affected due to a transparent system) are in play. So we should always look at the larger picture. Hope Shri. Modi will continue to help us understand by showing us these things are possible (UPI).
I don't even keep a ₹10 note in my pocket and some of the elderly shopkeepers taunt me for that😂.
Seriously. UPI is the best. As I said, I always make payments with UPI. Cash is like a burden accompanying me all the time.
Exactly yaar
Same here.
@Elden Disk 😂
Best part is i can get away from sneaky friends and relatives who ask for "50 rupay do, petrol bharana hai"🤣
@@rutvikrs bhai waah😂🤣😂🤣😂🤣😂
Same here too 😆😆... No more Uncles and Aunties asking "beta tu pay kar de Ghar jaate he dedenge"
I think it wouldn't have worked as well without Central govt making 0 balance accounts a possibility. It takes a big hit on national budget but it allowed everyone to have a bank account, cutting middlemen in most welfare schemes who used to embezzle the money, most likely this saved government more money than they were spending compensating for embezzlement. And it allowed even poorest of folks to use UPI
The middlemen are still there. They have switched to prepaid service sort of setting. You pay them money and then they will give your names for those schemes.
The middleman are your ward memebers, panchayat samiti members, i.e. anyone who gives the authentication that you are eligible for the benefits.
The middlemen are still there. They have switched to prepaid service sort of setting. You pay them money and then they will give your names for those schemes.
The middleman are your ward memebers, panchayat samiti members, i.e. anyone who gives the authentication that you are eligible for the benefits.
@@kamalkumar7978 chatgpt for govt. Policies and apps like my scheme(govt. Based) already solved this, just a marketing issue.
No matter how much people cry over demonitization but it was the major reason why UPI came. It paved the way for it. Government intentionally reduced money in ATM and started printing less bank notes. This forced people to go toward online payments since they were not getting enough banknotes for their transactions and ATM running dry. It was all planned. there were problems with demonitization drive but it was important
Indeed it was a dangerous step but a necessary one, I thought it would affect BJP's vote bank and might loose next election but gladly people were smart and thought clearly for the betterment of the nation
Despite this according to some reports cash use transactions are at all time high and UPI has made no difference to the way scamsters/frauds operate. But for me it's been a blessing with no tension of carrying wallet.
@@vivekramachandran2103 I think you meant to say it was, yes cash transactions were even high after demonitization. But that did change and current reports should be different than what it was just few months or a year after that
@@vivekramachandran2103 Because government won't take action unless needed. Now with UPI everything is under surveillance so whenever govt wants to crack down on someone it will.
Covid was the major reason and not demonitization.
Also, ofcourse people cried at that time. I mean even you would have cried if your mother or father died in that demonitization drive.
The lockdown of more than 1 year is what caused people to shift to upi. Also, don't forget the fact that cash uses is also increased.
UPI literally made life easier, especially for someone like me, who doesn't like carrying cash.
As opposed to figuratively making your life easier?
@@tstcikhthyscarrying cash is a hassle and using UPI doesn't make you lazier, just a better and safer alternate of cash
@@captainelgato8313 You didn't understand my comment at all. Also, *alternative
@@tstcikhthys myb on the second half but whats the "figuratively" issue you talking about. Please elaborate
When the idea of UPI was put forward in the Indian parliament in 2016 by the ruling party the opposing party made fun of it. They said that Indians are illiterate, dumb people who won't be able to use it, they also said that Indian infrastructure wouldn't be able to handle it (they were the ruling party for nearly 6 decades since Indian independence in 1947). There were articles in the times magazine, new York Times, Washington Post etc, making fun of UPI (in the same way which they made fun of Indian space program).
The main contributors of the success of UPI are:
1. The ruling party (BJP)
2. Network service provider JIO
3. The citizens of India
congress to hai hi pagal
And that how kids congress and left was wiped out from Indian politics
A congress free Bharat is the future❤️
@@darkknight2414 True that. But we also need an opposition who will keep BJP in check and doesn't let it lean towards the left.
@@krushna4181 I agree. The opposition needs to introspect within. It will be good for democracy. In a democracy the monopoly of a single party isn't good.
A bit of nitpicking:
IMPS isn't pronounced as a single word. All characters are pronounced separately.
BHIM is pronounced as a single word.
Exactly... It is very wierd to hear that
Stop nitpicking! This is like the one international info channel that has covered India!
Eye Em Pee Ess, it's good to pay with the Eye Em Pee E-esss.
Bhim Bhim Bhim Bhim, Bhim Bhim Bhim Bhim.
@@sumitagarwalsmart Why? Why ask a complete stranger to stop doing something that doesn't hurt anybody and is harmless fun? More so when it isn't directed to you.
@@singh_vivek_in exactly.
The availability of UPI users down to remote areas anyone with a phone is crazy! You can pay even offline when internet is not working! Not only UPI, but credit cards surged after pandemic. People are availing all the benefits to a point the revenue model of banks and took a hit maintaining services such as lounge access at airports and thus cut down some. Even if other players vanish, UPI will stay! Also UPI is super easy to use just scan the code or enter ID and pay. Surely made life easier. For perspective, India has upwards of 1.4 billion people and it’s not easy to find a unified solution affecting such a large demography. They can easily make it profitable by just taking ₹10 monthly from everyone as an operating charges just like we have to pay annual maintenance charges for debit cards close to ₹150 yearly. No one will mind paying measly ₹10 per month!
Brazil implemented something similar as UPI called Pix 2 years ago, but it is way more integrated and simple, people and commerces widely addopted it surprisingly quickly (not to mention the rush that all banks, be traditional or digital did to get preference on peoples keys, sometimes even offering prizes) without any governamnental incentive or intervention, and yes, by standart Pix doesn't have any fee, independently of the bank or who's the benefetiary, I reccomend you taking a look or perhaps even making a video about it, also our banking system is quite modern and robust, there is a ton of apps that their main focus is credit card w/ a simple money account or superapps that even have store integrated within (and usually offers cashbacks for outside apps).
I forgot to mention that cuz Pix was implemented by Brazil's Central Bank, there was no whining from banks about "oh no I'm not getting fees this is so wrong, hOW Im GoNNa SurViVe", mostly because digital banks came before and already didn't charged for the previous method of intrabank transfer (known as DOC and TED) like traditional banks did.
I was also thinking about Pix and its similarities with UPI. Here in Chile we still don't have something like that because direct bank transfers are immediate and free in the system (with some exceptions) and the state-owned bank BancoEstado has accounts for 13 of the 19 million inhabitants with CuentaRUT (debit account with Visa card), in which every account number is the same as the national identification number (RUN/RUT); which was literally a silver bullet when the pandemic hit the country and the government needed to disburse money to support both people and the economy.
While we have some fintech apps that are trying to promote QR payments (Mach, Tenpo, Mercado Pago, Fpay, etc), almost all non-cash payments are either though debit/credit cards due to the large presence of the Transbank payment network (recently with new competition like Redelcom, Sumup, Getnet, etc) or direct bank transfers.
Now this year the local Central Bank wants to reign over all this systems in two ways: Improve the immediate transfer system to make it safer, and the idea of a CBDC to try to facilitate small payments not covered with either bank transfers or card/QR payments.
It is well known in the industry that Pix is largely copied/ inspired by UPI only. Indians have a tendency to offer their best for free for the good of the world
Wow. Didn't know about this at all. Good for you fellow brics member👍🏼 I'll read more on pix
I don’t understand how pix is more integrated than upi cause upi directly connects bank to bank transfer. How do you improve on that one.
@@hj2711 by imagining things. Pix is a copy of UPI BTW
You know what's more interesting? Even the so-called Tech-hub of the world, the Silicon Valley in the USA, has no real challenger to this UPI system.
Actually, Google had been lobbying in US Congress to pass a bill to make a system like UPI. FYI, Google has tested this revolutionary UPI in India and successfully operates UPI based app Google Pay (formerly Google Tez).
Had UPI been a private company, the valuation of UPI would have crossed $100 Billion (a hectocorn) and would have swept this whole world.
I still don't get why old-school payment systems like PayPal or even Chime & Revolut are still valued so high.
@Potassium Syndicate India won't. It has never asserted itself in the past, and will never do in the future. There's huge insecurity amongst Indians, they aren't confident at all about themselves.
@Potassium Syndicate yes the government is starting to lobby the UPI
God I hate PayPal. Their fees are too high.
@@SirFaceFone UPI has ZERO fees
Wait for couple of years or so and see it's international transaction capabilities as well. The advantage it has over other similar services is that it's security features which cannot be hindered easily because it's directly Bank to bank and the inbetween system is not easy to crack
UPI is a wonder.
It allowed anyone with a bank account and smartphone to send and receive money.
And it is instant transfer.
When I saw small vegetable vendors and shops with QR code, I was surprised and proud when I came from Dubai after a while.
The progress was amazing.
Almost made everyone to do cashless transaction..
Now UPI system is coming to credit card too.
Another benefit of upi is that now it is very easy to start an online business because you can easily recieve payment with your code.
Even TH-camrs in India are providing upi links instead of going through youtube payment that keeps 30%
It has really changed lives here. From running to banks for everything, to using time taking internet banking to transferring money in 4-5 secs, it has revolutionised cash scene.
UPI is a blessing to be honest. It is an one-stop shop for any thing finance related, it has made money management incredibly simple and hassle free.
Great video. Thailand has something similar called PromptPay based on mobile phone numbers which makes it easy to facilitate social commerce transactions. In just a few years it's become the largest payment platform here.
Good to hear the progress
its diffrent, UPI enables to deduct or transfer money directly to your bank acc, prompt pay ask to transfer money to its wallet first then to who you want to give to
UPI in india is directly linked to bank account you can just need phone number to directly tranfer money to any account without any fees. It's so convenient it's been 3 years i have not seen a bank note.
@@oksowhat Before UPI became mainstream, PayTM had this option; transferring to PayTM wallet first and then to pay from the PayTM wallet..
@@tushar4evr776 pata h, faltu option tha, paytm wallet ke paise apas bank me nahi dal sakte the
And UPI is free to use for consumers and merchants as of now, with a maintenance spending of around $ 200-250 million or around ₹ 2000 Crore per annum by Government of Bharat.
Don't be a hyper national call it India
@@rimondas6729 typical leftist Even triggered by a name lol
Woah, that's expensive. How come this is the cost of running a few shitty servers ?
I am sure they are pocketing the remaining 199.5 mullion dollars and running this on total 500K $s as server cost !
You could call it Bharat Sarkar and make it less cringe dude. Government of Bharat is just, no.
@@krishnanunnimadathil8142 huh
Last time i used my debit card was to create a UPI account lol
Same LMAO!?
I really appreciate this video!
The best part is no patreon pitch in the beginning!!! +1 Sub
I was a late UPI adopter. I can no longer imagine e-commerce shopping and/or small daily transactions without UPI.
This is very rare channel, which goes into such a detailed explanation of the topic. Each and every time. 👌
Thanks for producing such an in-depth and resourceful video. It is interesting to learn the roots of UPI go as far back as 2005.
One key aspect of UPI growth and acceptance is the phone linked QR code based quick payment acceptance that made life easier for merchants who otherwise would have to go through a lengthy registration process before being on boarded to a payment app.
I think you still missed a lot of the openness of UPI like if you have a bank account you already have a UPI Id you don't have to do anything it takes 5 minutes on your phone with no requirements to do it has a lot of things which I doubt are possible with other such networks like on bank can have multiple UPI IDs on many different apps and other such things.Plus you failed to cover UPI 2.0
In December 2018, Union minister Arun Jaitley had informed Rajya Sabha that four people had died 'during the period of demonetisation'. Yet it finds mention in the video about UPI, something completely unrelated.
That's because it's India. International channels can't let go of this negative image completely,hence even in most unrelated videos they need to mention something definitely negative.
In my opinion,UPI was the most revolutionary step taken for public interest after article 370 abrogation by the present BJP govt soon after the availability of cheap mobile internet connections....
Are Bhagwa bhadwe jo bhi karle, Kashmir azaad ho ke hi rahega
It was in work before BJP came into Power.
@@SC-dj1sn Lol exactly. People will invent anything to suit their narrative.
@@Sarveshchanna1 GO read some articles.
@@SC-dj1sn it started devolopment after 2014 , so yes it's BJP.
You should be the one checking articles.
The thing is, we are so much into digital payment, that we sometimes forgot its an indian thing.
And also there will no transactions charges . It helps people to save a lot of money when shop keeper says that they have change for a particular product or sometimes if a product is 297 rupees most people just pay 300 rupees and don't care about those 3 rupees but with UPI u can pay the exact amount without the fear of the shopkeeper not having the required change.
We have a similar method of payment in Brazil called PIX. It's launch was quite game-changing, and it's practically impossible to remember how was life before it.
Yeah but UPI u can transfer money in decimals too they don't charge service charges
people here are confusing UPI as some app, not its not, its an API
Upi is not an app. It's a payment system that is completely free and I don't need to have PIX on my phone to pay you. If you have google pay and I don't, even that's fine. Whatever your payment system, my UPI can pay you without my having to download your app.
For IMPS you only need the recipient account number and their bank IFSC code. There is a configurable cool down period on adding the recipient account. When I first used this system in 2012, it was pretty far ahead of what was available in the US. Bank account to bank account transactions in the US were pretty archaic at the time and not easy to set up.
i was 9yrs old in 2012, can you tell me why was it difficult to transfer money from one acc to other despite we had everything internet and advanced computers and all
@@oksowhat You can have all sorts of supercomputers at your disposal it doesn't matter. As long as banks don't adopt common standards and APIs, they won't be able communicate balances to enable the money transfer.
@@oksowhat UPI is undoubtedly fastest & centralised platform which works perfectly for any bank transactions or inter-bank transactions
Australia has this as well in the New Payments Platform or NPP. The US is 20 years behind Fintech wise vs the rest of the world.
NPP and UPI are to be integrated as well.
Yeah we have a great fintech ecosystem
The US is not 20 years behind, stop acting like you know what you're talking about. USA has had these kinds of apps for a long time. Don't make things up.
@@Knight_Kin App?
This is a payment system. Lmao.
@@Knight_Kin *that are not third party. you dunno what you are talking about. Direct bank to bank and instant within 10 seconds.
Been using UPI for couples of years since then I never carried a single rupee because of ease of payment from this fantastic payment system....kudos to developers 👍
I have been carrying around 30rs in my bag for maybe a year but never used it 😅
I am 20 year old Btech student and from last 2 year i didn't carry cash 💵 , i only use UPI for daily payments
RuPay + UPI were very well thought, far sighted and timely executed. I can't think of any other decision that can parallel this decision in both planning and implementation
Excellent overview video! I'm quite impressed with the depth it went into; despite being quite familiar with the history, even I learned some interesting things. Thank you. One thing: IMPS and the TM in PayTM are initialisms, not acronyms-they're pronounced by its individual letters instead of as a word-while BHIM is an acronym (pronounced "beam") and not an initialism lol. Also, _routing_ is pronounced identically to "rooting" when it's an inflection of the word _route;_ the way you're pronouncing it, it is an inflection of the word _rout,_ which means a groove that is cut into wood.
UPI has allowed every capable (educated enough to use smartphone) to send money and even an illiterate to receive money without much hassle and zero fees. So as Indians, we do love UPI. But One problematic aspect is zero MDR and banks are supposed to foot the bill for infrastructure. This may lead to less-innovation by banks and private players and possible huge chaos when MDR status changes.
If MDR will be going to charge on UPI transaction it will be the death of cashless ecosystem in india..
Most of retailers have less than 5% margin non their products .
With MRP system in place and plus added burden of MDR on merchants .
UPI going to face same fate as faced by card payment system in india in past..
@@satishsingh-kc3ch some things can't always be profitable , like Indian Railways , but they are necessary for us .
@@ankushverma8625 Indian railways is already at a loss under the Indian government.
@@Traderking1990 All HSR systems are like that. India must move towards a future where HSR services are operated competitively by private players with the government mandating operations at set conditions.
14:30 Now add ONDC into that! You can literally have all the services at one platform. But with inclusive interoperability.
It is good to see that developing economies are embracing fintech payments. I was always impressed by how China leapfrogged past the credit phase and straight into for all intensive purposes a cashless society. I’m curious how far into this India is at, in Indonesia this has been the direction for the last 5+ years and the advent of wechat like local super apps are daily drivers for many. It’s ironic that North America and Europe are still stuck with cheques
indias number of digital transactions is far far higher than the us, china or japan and its still increasing exponentially.
Hey guys, where is the data showing India’s digital transaction volume is higher than China’s? Best I could find was India’s 2021 digital payment volume over UPI was 22 billion transactions and 2022 is standing at 45 billion so maybe 90 billion by December 2022. China’s digital payment volume in 2018 was 532 billion transactions on mobile alone, granted that accounts for 80% of China’s transaction volume. India if following the data I could find will only be at transaction volume that is 16% of China’s 2018 volume.
Please point me to the data you are basing your comments on as I would like to analyse this and get myself better acquainted with Indians growth.
@@WarrenKLiu I think he's talking about real-time transactions .
@@cat-man5522 all mobile transactions are real time far as I know. There is no 6-36 hours processing time like SWIFT.
@@WarrenKLiu no most of them ,use wallets. 2. What you are seeing is UPI transaction only. Not all transactions.
Finally this . It is currently 4:50 in India and I am still awake.Saw your video is out nice to be early from India
Best part is that you don't have a monopoly app here. There are big players too but govt. Is going to cap single player market share at thirty percent. There are dozens of apps you can choose from, you can switch apps any time or keep multiple UPI apps. Most people have more than one UPI apps on their phone.
Next India related video on ONDC please
But it is still far from implementation
It's on paper let's see maybe after a decade we have a video on that
In Brazil we have the PIX. It’s the best mobile payment system and it’s implemented by the Brazilian central bank.
In Thailand we have "Prompt Pay" implemented in 2018 by Thailand central bank as well and the cost is born by the central bank, which does not lose money as it prints less paper money.
@@Parrot3054 dont be cringe bro...
@@Parrot3054 when they don't have any ans they just say Cringe 🤡
@@Parrot3054 he said Brazil has PIX and they have used it. So he will obviously call it best 🤷. We should be proud on NCPI but shouldn't drag like this. It really feels slight cringe.
It isn't best bro , it's just copy of UPI.
The digital transaction ratio to population is also very less compared to UPI
Last month, I had a realisation. I noticed cash in my wallet which I had completely forgotten about. I was amazed to realise that I didn't once had to use cash for even once. UPI has penetrated Indian financial system to its core.
It also works because the service is seamless with near zero chance of error or glitches. Its very safe and the interface is vry easy even for someone illiterate
You should also cover "IndiaStack" without it FINTECH wouldn't have happened.
Thanks for coverage. Few points to note, in rural areas of India, you should keep cash always as a backup. In deep south , I dealt with a hospital, who would only accept cash. Note to self: Upgrade from iPhone6 since payments apps do not work in iPhone 6 !
Did you know you can go in a small shop without anything in pocket... and you just put your finger on a tiny fingerprint scanner and take out cash from you bank directly...
You can roam anywhere with empty pockets .. feels nice
It'd be interesting to know about other similar systems
there is none which is as pervasive
Brazil has its own version called Pix. And ofc China has taken the whole thing even further.
In Thailand we have "Prompt Pay" implemented in 2018 by Thailand central bank as well and the cost is born by the central bank, which does not lose money as it prints less paper money.
@@ArawnOfAnnwn how, Ali pay is a wallet and at best is comparable to old Paytm system.
However since china is a much more digitised society more people adopted it but by no means Ali pay as a system is better than UPI.
At the moment there is no system which comes closer to UPI when it comes to security and simplicity at the same time not even China. I'm not exaggerating, just stating the fact.
Very informative video. Haven't heard much of Indian fintech in the western media.
Western media will only show slums in India. India has already developed many Cyber Cities but I don't think Western media has covered that too.
India is already the 5th largest economy in the world with a GDP of $3.53 trillion.
After UPI, we are moving to e currency (cryptocurrency) from Reserve Bank of India (RBI), so now no bank account would be required, direct currency deposit and withdrawal from our wallet in RBI.
Future looks bright, Indian system shall be adopted worldwide for easy payment systems, no need to carry physical wallet
loved the presentation and the factual nature of your work
UPI : bigger, cheaper(free), easier and safer than any payment system in the entire world. The best ! 🇮🇳🇮🇳🇮🇳
Update: UPI can now be used in Singapore.
You have explained the whole process beautifully...
Great video.. Thanks for making
2:48 that place is very close to where I actually live 😂😂
Haha
Now a days even hard find to cash in my surroundings
Even for 2 rupees i use upi
I come from a tier 3 city and UPI is available at every shop, fruit and vegetable vendors. UPI has literally revolutionized the payment system. This is the biggest step towards digitization of India.
India is a cash based country. Due to this a large number of people and businesses don't pay tax and show income.
We have a large peaceful population as well still refuse to pay taxes. So India will sooner or later will be a country with almost 80% digital pay. It's not what we all wanted but needed so more people pax taxes.
In Lucknow when you visit the old Lucknow city where 80% peaceful population lives, NOT A SINGLE shop accepts digital payments, you're screwed if you dont carry cash and where that tax evasion cash goes only allah knows.
@@ShinAkuma unfortunately when in power, the peaceful population puts taxes on the non-peacefuls like us, called jizya. it is part of their belief system to discriminate against non-peacefuls.
@@ShinAkuma even in Bombay most black and yellow cabbies and in suburbs taxis do not take digital payments. This is in Bombay!
Maybe India should levy more direct taxes instead of relying on GST and other indirect consumption taxes that disproportionately effect the poor and costs everybody, the private sector and state in bureaucratic costs in implementing.
Indirect taxes raise the cost of entry for any given good it is levied on, compounds inflation and dampens consumer demand.
@@lazydamsel They will just wait. Most people do not like shops who does not have UPI.
You said 100 billion dollars in 2021 ,,😂😂...
It's 100 billion dollars for a month dude with just UPI.
AND it clocked 1 trillion+ dollar fro financial year 2021-2022
From the biggest merchants and malls to the smallest roadside vendors in India, almost everyone has UPI payment option.
I got a Tire shop in India ..nowdays 40- 50% sale come through UPI ..
And i can use the money on same day because it hit my bank instant and help me to find a better ROI...
And u can athun different employees who can recieve the confirmation thought app.
I did whole trip from 1 state to another without carrying wallet because I forgot it,for 10 days....yes flight tickets and id were verified through phone only....amazing
wow that's awesome!
Did you use DigiLocker and mAadhar apps for id verification ?
We are now addicted to UPI ...I hate carrying cash and card now ...
Indian Government signed MOU with the French Government regarding UPI. Now UPI is available in france too
People need to understand the momentous task of facilitating real time transactions for a country of 1.3 billion people. The digital infrastructure, online traffic, server load are only few of the things you need to maintain in this system. UPI is a 21st century's great success.
Number of online transactions in China + USA + UK combined is still less than Number of UPI Transactions in India.
With UPI, I literally find it a hassle to go the ATM to withdraw cash.
A few years back withdrawing money from ATM would be an ordeal in India but not anymore. Of late I see no queues at ATMs. This was made possible due to NEFT, IMPS and UPI. But UPI has revolutionized e payment system thanks to it's user-friendliness. One more factor that contributed to this is widely available telecom network with dirt cheap tariffs.
While cash still is the most convenient form of transaction, UPI is not far off. It has certain advantages of its own, especially quick online purchase and skipping long atm lines in the hit weather.
On an average i complete to something around 40-50 UPI transactions per month.
I have not been to an ATM in more than a year. I feel confident even at the smallest stores and street hawkers since everyone accepts UPI
WhatsApp didn't get prior approval because they refused to follow Indian laws . So you could ask WhatsApp why was that before dumping blame on Indian Gov blindly.
Would be curious to see a video on FedNow - potentially revolutionary or not a major threat to the private FinTech and For Profit credit card industry?
It's great for Indians but not for foreigners as it doesn't work with foreign banks and ccards. Thus still prefer cash when visiting India but definitely appreciated retailers willing to use ccard machines for bigger purchases as there weren't many willing to do so. It literally defined where I made my purchases.
wish earning become as easy as transferring or spending it online...
I'm still surprised that NFC payments hasn't made its way into the UPI ecosystem, and NFC is missing from like 99% devices in India. Seems like a natural thing to do.
The amount of extra costs is the reason
You need specialized devices that accept nfc payments instead of a simple printed qr code on the shopkeeper's end (yes, this is a large hurdle for many vendors still)
As well as nfc supported devices on the user end
@@SpricesExist Of course theres a cost to everything but given the prevalence of digital economy in India I'm still disappointed that theres not a push for nfc devices. Rarely any smartphone in India has nfc. But it used to not be the case near about 2014s when mobile phones were starting to have nfc. Phone manufacturers have dropped the Idea since then.
@@sumansaha295 thinking about this a bit more, I realized you simply cannot whatsapp message an nfc pay point like you can a upi qr code
You also cannot make or recieve nfc payments over sms (important in rural areas)
The shopkeeper needs to take out the nfc payment device so you can put your phone over it to pay while they can put as many qr code printouts as they want on their wall
It's simply an inferior technology in almost every way I can think of except maybe saving 5-6 seconds sometimes (not in normal retail stores, just trains or malls)
@@SpricesExist nfc is needed for public services, it doesnt provide much advantage for your neighborhood shopkeeper bill payments. Its obviously a better technology considering nfc is a REAL communication protocol unlike a qr code. Where transactions are more or less bound by human trust/error.
For accepting that nfc one needs a pos machine right?
I don't remember going to bank or ATM in last 2 and half year. Even small street vendors in my tier 3 city has UPI scan codes. This has made cash almost unnecessary.