Decoding India’s Tech Stack: A Deep Dive into UPI’s Architecture
In this article, we will discuss the technology stack of UPI and how it works.
Unified Payments Interface (UPI) is a real-time payment system developed by the National Payments Corporation of India (NPCI) that facilitates inter-bank transactions by instantly transferring funds between two bank accounts on a mobile platform.
UPI and IMPS
Launched in 2016, UPI has revolutionized the digital payments ecosystem in India, making it easier for individuals and businesses to make and receive payments. In this article, we will discuss the technology stack of UPI and how it works.
UPI is built on top of Immediate Payment Service (IMPS), which is a real-time inter-bank electronic fund transfer service.
IMPS was launched in 2010 by the NPCI and was the first real-time inter-bank electronic fund transfer service in India.
The UPI system, however, takes IMPS to the next level by allowing for the initiation of transactions using a virtual payment address (VPA) instead of requiring account numbers and IFSC codes.
