1 -India's UPI was thoughtfully planned
- What can be termed as a big compliment for India's Unified Payment Interface (UPI), search giant Google wants US Federal Reserve to implement a similar real-time payments platform. The letter (dated November 7) has been written by Mark Isakowitz, Google vice president, government affairs and public policy, US, Canada to the Federal Reserve Financial Services Policy Committee. National Payments Corporation of India (NPCI) built India's UPI system.
Google has also shared details of its learnings from the UPI with the US government. The company also shared the success of its payments app, Google Pay, in India. "Google has been a successful market participant in Indias use of UPI, and Google Pay provides one of the three leading mobile applications that use UPI.
2 its design led to its success
- UPI was thoughtfully planned and critical aspects of its design led to its success. "First, UPI is an interbank transfer system (there are now over 140 member banks, after initially launching with 9 participating banks)
3 UPI system is an open system on which technology companies can build apps that help users directly manage transfers into and out of their bank accounts
4 High number of transactions
- The annual run rate of transactions flowing through UPI is about 10% of India's GDP. This includes 800 million monthly transactions valued at $19 billion. India's monthly UPI transactions have grown 56 times in just two years, from 17M in August 2017 to 955M in September 2019.
5 Supports real-time both low-value as well as high-value payments
- Users can start making transactions starting from Rs 1 which helps in increasing the user base.
