The reason for the rise in UPI transactions is due to its wider adoption owing to the simplicity and security of transacting. The initiatives such as BBPS (for bill payments), onboarding of small merchants, API integration with large merchants by Banks in addition to the P2M (Person to Merchant) transactions done through PSP apps like Google Pay, PhonePe, Amazon Pay etc., has seen growth in transaction volumes.
UPI will see an upward trend with the launch of UPI 2.0, with mandates for one-time & recurring payments, IPO subscription etc. Integration with NETC for tolls and onboarding of small merchants in semi-rural and rural areas will see UPI volumes increase.
With the government's effort towards making India a less-cash economy, we are constantly innovating and developing solutions to enhance the customer banking experience and promote the government's efforts towards a cashless economy. Our AI-based Omnichannel solution Kiya.ai processed over 2.3bn transactions in the last 12 months. We recently enabled a bank's customers to withdraw cash from their ATMs by only scanning a QR code using the UPI app. Such initiatives will help transition plastic-based payments to fully digital payments. This is truly an Omnichannel experience for clients since we are able to extend UPI to a non-mobile platform. In the near future, we will enable use cases of UPI driving digital payments using IoT integration and voice commerce.