National Payments Corporation of India (NPCI) is preparing to make a big change in the online payment system of Unified Payment Interface (UPI). Through the new facility, people can now save their UPI ID on any online shopping or service platform.
This service will work in the same way as users of any online platform save their credit or debit card details. This is also called tokenization. Its biggest advantage will be that now while making online UPI payment, you will not have to give the ID again and again and this will reduce the payment time.
According to ET’s report, people associated with the matter said that there is a plan to allow NPCI users to store their UPI ID at the merchant checkpoint. Currently, when a customer checks out on an e-commerce site, he usually selects the UPI app and then the account through which he wants to make the payment. It has been told that when the customer locks the preferred UPI ID, the time can be reduced by reducing the steps in the process.
Approval will have to be taken from RBI
According to sources, before launching this facility, NPCI will have to get approval from the Reserve Bank of India (RBI). As per RBI’s instructions, payment gateways are only allowed to tokenize the card. Through this facility, users do not need to fill in the complete card details every time they make payment on the website. If the facility of saving UPI ID is approved, then making payment through UPI will become equal to card payment.
There will be improvement in customer convenience
If this feature is rolled out, consumers can save their UPI ID, called UPI handle, on popular merchant sites like ecommerce platforms, travel booking applications, food delivery apps and quick commerce platforms that they use regularly. This way users will not need to enter their UPI ID or select the UPI application every time they transact, which will improve customer convenience and increase the success rate of transactions.
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