Unified Payment Interface (UPI)- An innovation of India towards a Cashless Economy

Abstract

Demonetization had changed the perspectiveof consumers toward cash payments.  After demonetization, the Indian Government has two objectives: to fulfill the demand for new currency created by the scrapping of the old currency and to promote digital payments. Digital Payments come into existence in the 1980s, it is not a new technology. Further, after demonetization government has pushed the adoption of digital payments. Also, the COVID-19 pandemic has accelerated the adoption of digital payments among consumers. This paper reviews the Unified Payment Interface (UPI) a new innovation of digital payments in the Indian Market. It explains the parties involved in UPI transactions, its benefits and challenges, its current status, and its comparison with other digital payment methods. This paper concludes that UPI is a new revolutionized method in the area of digital payments which is easy to use and affordable but needs the awareness and confidence of customers who belongs to rural areas.