UPI 2.0 — The game changer for your business
When UPI 1.0 was rolled out on 11 April 2016, the end users were the first to get the benefits. It allowed the users to transfer money between any two bank accounts using a smartphone without requiring any details like card/account numbers making it a seamless and quick process.
And with UPI 2.0, the focus is on the merchants and businesses. To boost the merchant transactions this updated version of UPI features — recurring payments using e-mandate, invoice payment and overdraft facility for customers to pay even if they ran out of money and an increase in payment cap to Rs 200,000 per day for the customers to shop more.
Below are the latest features of UPI 2.0 and how it can help your business grow:
1. One time mandate with block functionality
This will allow any user to authoritative transaction for later or for recurring payments. The mandate to authorize this payment is digitally signed and stored at the customer’s account holding bank also with respective PSP bank. The customer’s account shall get debited when the UPI Mandate is executed by the merchant or payee.
Here’s how this works:
With one time mandate, users can pre-authorise/block the funds in their bank account and payment will be made as soon as the service is provided or the timeline is reached. Merchants providing services with fixed cost like cabs aggregators, subscription service providers, etc. will be benefited.
2. Over-Draft (OD) account as an underlying account in UPI
Currently, savings and Current account addition is permissible in UPI. Now, with this additional feature, the user can also link an overdraft account provided he/she is found eligible to avail an OD c by his/her bank.
Users with good credit score can avail this service by linking their over-draft account with UPI and make the payment even if they didn’t have enough fund in the bank account.
3. Invoice in the Inbox (View attachment & pay)
Using this feature customer can check/verify the invoice or attachment prior to authorizing the payment via a secure link received in the collect/intent message. To start with, the facility can be availed by verified merchants.
Invoice in the inbox allows the user to verify first and then make the payment this will allow the merchant to streamline their reconciliation and in reducing payment disputes.
4. Signed Intent / QR
The signing of Intent / QR provides more security while making payment by the customer.
Signed QR gives a customer the flexibility to pay using any UPI app, now no need to keep different QR in your shop.
5. UPI per transaction cap moved to 2 L
Users can now use the higher amount on transactions for specific use cases.
UPI was launched in 2016 and in the last two years, it has become a popular payment mode crossing 620.17 million transactions in December 2018, up 18% from 524.94 million in November 2018. The total count for 2018 reportedly stands at 3 billion.
It is clear that UPI is now becoming the preferred payment mode in the country, and this is why its the high time to add UPI into your business.
If you have any questions or would like more information on how UPI could benefit your business, please get in touch with us at 09599771577 or email us at help@wibmopay.com. We’d be happy to talk to you on any queries you may have or fill out the form above to arrange a call back at any convenient time.
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