Bye Bye Cash! – UPI paves the road for a cashless economy

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According to PM Modi, India’s digital payments would surpass cash; cross-border UPI linkage launched with Singapore

Because Prime Minister Narendra Modi recently declared that digital transactions will soon surpass cash transactions in India, the country’s push towards electronic payments is expected to pick up speed. The switch from cash to digital payments has been accelerated by the Unified Payments Interface (UPI)’s explosive expansion in recent years.

With almost 2 billion transactions handled in January 2022 alone, UPI, a real-time payment system created by the National Payments Corporation of India (NPCI), is one of the fastest-growing payment systems in the world.

It offers a practical and affordable substitute for conventional payment systems by enabling users to send and receive money instantaneously using their mobile phones.

India has started a cross-border connection with Singapore’s PayNow system to further solidify UPI’s status as a global leader in digital payments. By the connectivity, users of both countries’ UPI and PayNow mobile apps will be able to send funds instantly and cheaply between the two nations.

It is the first time that UPI has been connected to a foreign payments system thanks to the relationship between India and Singapore, which is anticipated to strengthen commercial links between the two nations. The programme is also consistent with India’s larger digital payments goal, which aims to increase economic growth and make digital payments accessible to everyone.

The partnership between UPI and PayNow is only the most recent in a long line of initiatives India has launched to encourage digital payments. The Pradhan Mantri Jan Dhan Yojana and the BHIM app are two of the government’s recent initiatives to promote the use of digital payments throughout the nation.

Digital payments have increased at a compound annual growth rate of 55% between 2016 and 2020 as a result of these efforts. UPI now also allows users to send money without the use of internet connectivity. Furthermore, UPI now allows NRI to have access to UPI wallets. UPI has already started to go global. These advantages of digital payments are progressively becoming more apparent as India works towards a cashless society.

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Abel Mathew

Marketing Enthusiast | Product Marketing at smallcase | Cinephile ----The content in this article is purely the author’s personal opinion and is for informational and educational purposes only. It should not be construed as professional financial advice and nor to be construed as an offer to buy /sell or the solicitation of an offer to buy / sell any security or financial products. The views and opinions stated in the content belong to the author. Smallcase Technologies Private Limited does not uphold nor promote any of the views / opinions.

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