Why India's UPI system is in news these days?
In addition to efforts to make cross-border transactions easy, India’s digital payment platforms, such as the Unified Payments Interface (UPI), are slowly gaining appeal on a worldwide scale. Money transactions and payments for remittances are becoming less expensive as a result. For instance, now that the peer-to-peer payment platforms have been linked, citizens of Singapore and India will soon be able to instantaneously send money to one another using UPI and PayNow.
Amongst several notable revelations, it was revealed that G20 citizens travelling abroad will shortly be able to pay merchants using the UPI transactions service. Additionally, non-resident Indians (NRIs) in a few other nations will be able to use UPI systems to make payments without needing an Indian mobile number. UPI is taking greater and greater significance for the nation’s government, which maintains to make investments on rewards for retailers to charge on activities.
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UPI serves as an inter-bank transfers system that is putting greater consumer purchases under the virtual web. It’s possible that payment on UPI will soon be extended to additional banks, which could have an effect on payment card systems including Visa and MasterCard.
Why Japan is looking to join India’s UPI system?
Although both governments consider encouraging digital collaboration through encouraging compatibility because the digital transactions platform might bring convenience of payments across borders, Japan is “seriously” thinking about implementing India’s UPI transactions platform. In order to facilitate online transactions, Japan and India want to improve digital interaction by fostering compatibility using the immediate time money transfer platform. It is crucial that Japan might join UPI.
The method would be adopted for the first time by a significant nation, which might encourage the growth of online payments in both nations. Additionally, it could serve as evidence of India and Japan’s expanding digital collaboration. The nations that are currently processing payment methods using the Unified Payment Interface (UPI) are Bhutan, Nepal, Singapore, and the United Arab Emirates.
In a discussion with a news organisation, Kono Taro, the Japanese minister of information technology, stated that Japan is going to join India’s UPI system and is trying to establish mutual recognition of digital Ids. Additionally highlighted by Taro was the most recent gathering of the G7 Digital Ministers, to which our Indian Technology Minister Mr. Vaishnaw was invited. Efforts are being taken to encourage digital collaboration by Japan and India. In order to start working together for the growth of connectivity, Japan is now considering seriously adopting the Indian UPI, the payments system, and is contemplating about the ways they can both accept e-ID.
In India, mobile and prepaid cards will execute 87.92 billions of dollars payments valued Rs. 149.5 trillion in 2022, along with credit and debit cards and preloaded payment methods. Having a share of the market of forty percent and 44 percent respectively in terms of the amount of transactions, UPI, Person to Merchant, and Person to Personare the most popular payment methods amongst customers. “AI is a fantastic opportunity for democratic nations, but it also has certain hazards. We are concerned about how it may affect democracies. The world’s leaders must come together to discuss methods to control and stifle the propagation of false information that uses AI technology, according to Taro, who was mentioned by WOIN.
Japan has expressed its intention to participate in India’s UPI platform just a short time after India reached an agreement with 7 SCO members for the implementation of its methodology for creating and operating digital infrastructure in the public sector.
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