Visa-Mastercard shop is about to close… Why is superpower America scared of UPI? – why we are afraid of upi of india

[ad_1]

how did it start

The National Payments Council of India (NPCI) was formed by the RBI in 2008. It developed IMPS in 2010 with mobile SIM as the base. With its help, transactions below two lakh rupees can be done immediately from mobile. But it had many limitations. For example, payment could not be made to the shopkeeper. Also, there was the hassle of adding beneficiaries to it. NPCI developed UPI to overcome these problems. It is considered to be the brainchild of former RBI Governor Raghuram Rajan and Dilip Asbe. Asbe is currently the MD & CEO of NPCI.

How popularity increased

How popularity increased

Through UPI, you can easily pay anyone at any time. UPI was launched in 2016. It revolutionized digital payments in the country. Today India has become number one in the world in terms of digital payments. UPI’s share in retail digital payments reached 90%. UPI is a completely indigenously developed digital payment interface. It is so simple and safe that even the Central Bank of America, the Federal Reserve, has praised it. The biggest reason for the popularity of UPI is its simplicity. It operates round the clock and enables instant payment. Also, it doesn’t cost any money. It also has the facility of inter-operability. That is, if you have Paytm and the shopkeeper has Google Pay then there is no problem. You can easily pay through UPI.

with luck

with luck

All digital payment apps in India like Google Pay, Amazon Pay, Paytm, Bhim, BharatPe, PhonePe are based on UPI interface only. It was launched on 11 April 2016. PhonePe adopted it in August the same year. With the advent of Jio in September 2016, the reach of the Internet increased. Demonetisation in November 2016 gave wings to the UPI to fly. In September 2017, Tez got permission to use UPI, which is now known as Google Pay. In November 2017, Paytm also got permission to use UPI. He did not look back. The Government of India is preparing to take its UPI payment system to more than 30 countries. NPCI has formed a separate company to spread UPI all over the world. Its name is NPCI International Payment Limited.

Many countries showed interest

Many countries showed interest

Nepal has recently adopted UPI. Singapore, UAE and Bhutan have also adopted UPI. Countries like Malaysia, Thailand, Philippines, Vietnam, Cambodia, Hong Kong, Taiwan, South Korea and Japan have shown interest in it. India wants to spread its payment system worldwide. This will facilitate Indians living abroad to send money back. Along with this, people going abroad will not have any problem in spending money. If people abroad use UPI, India’s economic dominance will also increase. This is the reason why the government and RBI have given the facility to operate UPI from international numbers as well.

Why is America in trouble

Why is America in trouble

Veteran tech company Google has also sought to adopt UPI in the US or develop similar technology. America has always been the leader of the financial world. Its currency dollar is dominant all over the world. It has an international payment system like SWIFT. Apart from finance, America also speaks in tech and IT. This is the reason why America is worried about UPI. With the consent of France, India will get entry in the European Union. This will also increase the pressure on America. Sooner or later it will also have to give permission to UPI. That means next time you go to France, you will not need to convert your currency. Nor will you need to carry a forex card. You can pay directly through UPI.

Visa-Mastercard bad condition

Visa-Mastercard bad condition

Merchant Discount Rate i.e. MDR is applicable on the payment you make with the card. It ranges from one to three percent and goes into the accounts of companies like Visa, MasterCard and American Express. MDR in UPI is zero. That is, there is no benefit to these companies from this. Shopkeepers are also now asking customers to pay through UPI instead of cards. Due to this, the earnings of Visa, MasterCard and American Express are decreasing. That’s why these companies are badly scared of UPI. The way countries around the world are adopting UPI, due to this, the shops of these companies may be closed in the coming days. Now the facility of payment through UPI has also been made through credit card.

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *