Mastercard’s Chief Financial Officer Sachin Mehra recently lauded India’s Unified Payments Interface (UPI) for its outstanding accomplishments in the field of electronic payments. But he also openly recognized that being a member of the UPI ecosystem can be difficult and frequently results in losses for individuals taking part. This follows UPI’s achievement of outstanding milestones in transaction volume and value, proving its broad acceptance and influence on India’s digital payment environment.
Impressive UPI Growth
By crossing 10 billion transactions in August and maintaining its pace with 10.56 billion transactions in September, UPI, short for Unified Payments Interface, has created history. Even though there was just a slight 0.3% rise in transaction value between these two months, it nonetheless increased to Rs 15.8 trillion from Rs 15.76 trillion in August.
In comparison to the prior year, data from the National Payments Corporation of India (NPCI) shows a significant 56% increase in transaction volume and a 41% increase in transaction value. With 42% of customers choosing UPI over other online payment options throughout the holiday season, this illustrates the rising trend of digital payment systems in India.
Concerns of Sachin Mehra
Despite UPI’s outstanding accomplishments, Sachin Mehra, CFO of Mastercard, highlighted worries about the difficulties it presents to members of the ecosystem. He called it a “incredibly painful experience” that frequently results in losses of money. He also emphasized that banks who facilitate UPI transactions regularly suffer losses, raising concerns about the long-term viability of the concept. The difficulties that the banks participating in these transactions experienced were also emphasized in Mehra’s earlier statements of May. 
UPI explanation:
India’s most widely used digital payment platform is called Unified Payments Interface (UPI), which is a real-time payment system. It enables people to transfer and receive money, handle numerous financial operations, pay bills, make online purchases, and more utilizing a mobile app or banking website. UPI offers a single interface that connects many banks, simplifying the process of moving money across bank accounts.
Users can create a virtual payment address (VPA) that is connected to their bank account, doing away with the need to divulge private banking information. Payments and money transfers using UPI are quick and easy since transactions are handled quickly. The platform’s accessibility and general acceptance have facilitated the expansion of digital payments in India.
While there is no denying that UPI has significantly improved India’s digital payment environment, Sachin Mehra’s worries draw attention to the difficulties that ecosystem players, particularly banks, must overcome. Addressing these issues and guaranteeing the ecosystem’s financial viability will be crucial as UPI continues to develop and influence the future of digital payments in India. The remarkable expansion of UPI highlights its significance in India’s digital economy, and both consumers and companies as well as financial institutions are very interested in its sustained success.