Instant payments have revolutionized the way small business owners like Arun Kumar conduct transactions, making their lives easier and businesses smoother. Arun Kumar, a fruit vendor in Mumbai, has been able to streamline his operations thanks to the Unified Payments Interface (UPI), an app-based instant payment system that allows users to send and receive money quickly and securely.
For Arun, who has been running his fruit stall for the past seven years, the shift from cash transactions to UPI payments has been a game-changer. “No issues of handling cash, giving change to customers. It has made my life and business smooth,” he says.
Launched in 2016, UPI has gained immense popularity in India, becoming the biggest real-time payments market in the country. With 14 billion transactions recorded in May alone, up from nine billion the previous year, UPI has become the go-to payment method for millions of Indians.
However, the ease of use and popularity of UPI has also attracted scammers looking to exploit unsuspecting users. Shashank Shekhar, founder of the Delhi-based Future Crime Research Foundation, warns that scammers use various tactics to trick people into sharing their UPI pin numbers or other valuable information.
Despite the risks, UPI is being promoted in rural areas where access to banking services can be challenging. Poonam Untwal from Rajasthan runs a guidance center that helps people in rural areas use digital banking services. She believes that UPI will help develop the local economy and empower small business owners like herself.
As UPI continues to expand its reach, with retailers in countries like Bhutan, Mauritius, and even France accepting UPI payments, the need for enhanced security measures to protect users from fraud becomes increasingly important. While UPI has undoubtedly transformed the way transactions are conducted in India, it is crucial for users to remain vigilant and take necessary precautions to safeguard their financial information.
