1/ The Unified Payments Interface (UPI) for real-time transactions in India is a good case study for other nations in the payment space.

2/ What’s UPI? UPI is an instant real-time payment system developed by the National Payments Corporation of India.

It accounts for 60% of digital retail transactions in India today and still growing.

UPI = payment markup language + standard for interoperable payments

3/ Let's take a look at how it works.

𝐑𝐞𝐠𝐢𝐬𝐭𝐫𝐚𝐭𝐢𝐨𝐧

1. Bob wants to open an account and provides his phone number +91 12345678

2. Bob performs OTP (One-Time Password) phone verification

3. Bob sets up VPA (Virtual Payment Address) bobaxis

4/ 4. Bob’s payment app creates VPA with the acquiring bank

5. The acquiring bank returns with VPA

6. The payment app returns VPA to Bob

5/ 𝐋𝐢𝐧𝐤 𝐭𝐨 𝐁𝐚𝐧𝐤 𝐀𝐜𝐜𝐨𝐮𝐧𝐭

7. Bob wants to link his SBI bank account with VPA bob at the axis. The request is forwarded to NPCI (National Payments Corporation of India).