Unified Payments Interface (UPI) : Detail Analysis
India's payment system has undergone significant advancements in recent years, driven by digital innovation, regulatory support, and a growing emphasis on financial inclusion. The country has become a global leader in digital payments. Here’s an overview of the latest advancements and the architecture behind them: 1. Unified Payments Interface (UPI) Introduction: UPI is a real-time payment system developed by the National Payments Corporation of India (NPCI) that facilitates inter-bank transactions. It allows users to transfer money between bank accounts using a mobile device, with just a Virtual Payment Address (VPA). Architecture: Client Layer: The client-side includes UPI-enabled mobile apps like Google Pay, PhonePe, Paytm, and others. Users interact through these apps, which provide interfaces for initiating transactions. Middleware: UPI acts as the middleware that connects multiple banks, providing interoperability and ensuring that transactions are processed in real time. Ban...