UPI “On-device” wallet – How it may look

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UPI “On-device” wallet – How it may look

            These are my personal views only.  ‘The bottom line is Safe ePayments. Nothing more, Nothing less’

Reserve Bank of India, Shri Das on 8th December 2021, announced a major addition to the UPI ecosystem

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 (ii) make the process flow for small value transactions simpler through a mechanism of ‘on-device’ wallet in UPI applications;

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The accompanying Reserve Bank of India, gave a glimpse of “On-device” wallet in UPI app.

 

6. Simplification of Process Flow for Small Value Transactions over UPI

 

UPI is the single largest retail payment system in the country in terms of volume of transactions (14 crore transactions per day, October 2021)3.

One of the initial objectives of UPI was to replace cash for low value transactions. Transaction data analysis shows that 50 per cent transactions through UPI were below ₹200, indicating its success.

These low value transactions, however, utilise significant system capacity and resources, at times leading to customer inconvenience due to transaction failures because of issues related to connectivity.

It is, therefore, proposed to offer a simpler process flow by enabling small value transactions through an “On-device” wallet in UPI app which will conserve banks’ system resources, without any change in the transaction experience for the user.

 

 

UPI “On-device” wallet – How it may look

            Once Reserve Bank of India and NPCI releases tech specs of ODW, there will be more clarity on the thought process.

            As of now, the UPI “ON DEVICE WALLET” has moved a step closer from FinTech Fiction to Reality.

 




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