Soon, a payment interface that enables transaction across banks

The National Payments Corporation of India (NPCI) will launch Unified Payment Interface (UPI) that will allow users to transfer funds and make payments across multiple banks in April.

AP Hota, Managing Director and Chief Executive Officer, NPCI, said UPI, which is currently under testing, not only eases authentication process but also allows immediate transfer of funds.

So far, 29 banks have expressed interest in partnering this scheme. A customer can register with any of the banks that have UPI service even without being customer.

The bank provides the user with a virtual address, which could be shared with the payee.

This eliminates the need to share the mobile number or account number ensuring privacy. Upon sharing the address, the user will get a pop-up prompting him to enter the password.

This is unlike the Immediate Payment Service (IMPS), where the user needs to give the account number and IFSC code of the bank or mobile number and mobile money identifier.

“Once the implementation is complete, we expect the impact to be huge in payment space, especially in e-commerce sector,” Hota said. With most of the transactions happening through mobile phones, Hota said UPI will ease the transaction process and will reduce the need for cash payment.

In addition to UPI, NPCI will be launching four other products, including Bharat Bill Payment Service (BBPS), RuPay Credit card, electronic toll collections and tap-and-go-transit card.

NPCI will be testing BBPS, which will facilitate recurrent payments such as utility bills through a single outlet, in April.

Billing agencies that are interested in availing themselves of this system should be registered with one of the associated banks that are BBPS-enabled.

NPCI’s RuPay payment network is being expanded to include credit services as well and will be operational starting June-July.

“Combination of credit-cum-debit card is also in the offing. But, it is still under discussion phase as the banks have to make procedural changes and we will take it forward based on demand,” Hota said.

NPCI is planning to bring in tap-and-go-transit card by end of March for small value transactions.

A pilot is planned with Bangalore Metropolitan Transport Corporation for buses and Kochi Metro.

Hota said the Urban Development Ministry has expressed its intent to adopt it as common mobility card, which could be used across the country. “Right now, it will be used for transport but plans are under way to extend it to small value transactions like grocery shopping as well,” he added.

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