A groundbreaking UPI payment system is set to transform India’s online payment landscape.
The National Payments Corporation of India is rolling out the UPI Plugin System, poised to revolutionize the way payments are made online within the country.
UPI Plugin System
Currently, when making online purchases, users are often redirected to third-party platforms like Google Pay or PhonePe for payment processing
This process sometimes leads to payment-related issues.
The innovative UPI Plugin System seeks to address this concern by eliminating the need for third-party apps such as Google Pay and PhonePe. In essence, this means bidding farewell to standalone UPI payment apps.
Instead, users can seamlessly utilize virtual payment addresses for all their online transactions.
Advantages of New System
This innovative UPI Plugin System holds the promise of reducing fraudulent activities while simultaneously expediting online payment processing.
Experts predict that this system will also lead to a surge in the overall volume of transactions.
However, major players in the online payment realm like Google Pay and PhonePe have expressed reservations about the UPI Plugin System.
While acknowledging its potential benefits, they point out existing challenges.
Presently, PhonePe commands a significant 47 percent stake in the online UPI payment market, with Google Pay following closely at 33 percent.
Paytm ranks third with a 13 percent share.
To ensure a diverse and competitive UPI payment sector, the government has implemented a 30 percent cap on market share, preventing any single company from gaining monopolistic control.
The introduction of the UPI Plugin System signals a major shift in India’s online payment landscape, aiming to simplify transactions while fostering healthy competition among key players.
