It might even be 99.9999% percent and still be third rate. This is the case currently as well. UPI is treated as a gimmick by the vast vast amount of Indians as well as the government.
Easiest way to identify the government's apathy is special limit of 1L per day. I mean what and why? Are users children that they have activated a parental control? Then there is the second special apathy of NO customer care. There are frameworks in place to help out if credit card payments go haywire like chargebacks (to not get into it all the possible remedies), what to we have for UPI?
Customer will not and do not trust UPI beyond the basic daily grocery shopping. I have seen in restaurants and shopping malls when someone tries to pay using UPI and waving their phones like wands trying to catch a signal. No way to cancel a stuck transaction, no way to know about your money in limbo, and no rewards. It is a bottom tier payment method. It beats out cash and only cash for salaried people. So, less than 3% of the country's population in a vast sense. That 3% is slowly getting a bit wiser and will dump this system in a heartbeat as soon as even 0.1% transaction fees is introduced. I know the fees will add it in a slabbed system but then we will get to watch it stagnant together.
No one can and no one rightly trusts this stupidity beyond 5K. Ironically, the same amount that people and government, both recognise is near inconsequential. As this is the limit of Tap n pay without pin 🙃
Card payment success rate also 99.9999%. Card companies officially told 99.9999% success rate. They also never claim 100%.
UPI Circle - UPI has launched a "UPI Circle." You can control your child's transaction limit without the need for them to have a bank account. Parents have full control.
Search for "UPI Circle" for more details.
UPI dispute - Real-time online dispute resolution options have been launched in UPI.
99% of UPI issues are resolved in real-time within 1 minute.
One piece of advice: avoid using SBI Bank's UPI, as their servers are down most of the time.
Currently, this real-time online dispute option is live only for UPI linked to bank accounts.
Most importantly, UPI disputes now follow EMVco transaction and dispute guidelines, the same ones used by Visa and Mastercard.
There’s no need for a separate customer care service for UPI. Do Visa or Mastercard have their own customer care? Banks handle everything.
UPI's chargeback process is much faster and better than card payments.
The only issue is that some bank employees still don't fully understand UPI disputes.
However, many banks are pro-active in helping with UPI disputes.
You can now raise UPI transaction disputes directly from the 'help section' of UPI apps.
One problem that was occurring earlier was that banks would close disputes in favor of the acquirer bank without listening to the customer's side or any evidence.
Recently, NPCI issued a circular instructing banks not to resolve disputes in favor of the acquirer bank without proper evidence.
You can read the new guidelines, UPI dispute reason codes, etc here:
https://www.npci.org.in/PDF/npci/up...of-NRP-PRD-process-arbitration-guidelines.pdf
UPI Rewards - Speaking of rewards, credit card linked UPI already offers rewards, and in the future, the UPI reward rate will be increased.
Debit cards - their usage is decreasing not just in India but globally, including in Western countries.
And don’t think that the decline in debit card usage in Western countries is solely due to the rise of credit cards.
Open banking (A2A) payments are becoming very popular in Europe and the USA.
A survey in Europe has shown that Open banking (A2A) payments will surpass card transactions and become the no. 1 payment method in Europe.
UPI offline payment 'UPI Lite & UPI Tap & Pay', 0% UPI failure rate - You haven't heard about UPI Lite? Many people in India use UPI Lite, which doesn't require an internet connection and has a 0% transaction failure rate.
Recently, the UPI Lite (also UPI Tap & Pay) wallet limit was increased from ₹2,000 to ₹5,000, with a transaction cap of ₹1,000.
I think the limit will eventually be increased to ₹15,000 in the coming years.
UPI MDR - for normal bank account link UPI, MDR is never going to be introduced for small merchants.
The govt earns billions of dollars (Actually, saying "dollars" would be incorrect; govt earn in rupees, but you can understand it as the equivalent) in indirect profit from UPI transactions.
UPI did charge MDR fees initially until 2019, yet people still used UPI on a large scale. Moreover, the maintenance cost of UPI is very low.
The govt only needs to spend a small amount for UPI maintenance, and the indirect profit is 1,000 times higher than that.
Lastly, let me say one thing. Maybe you're so busy exploring the rest of the world. that you're unaware of the new developments happening in India and with UPI.
UPI has improved a lot. Personally, I feel it will dominate every field by the end of this decade.
And the most important thing is that seeing UPI's success, the USA and Europe have launched UPI-like payment systems (FEDNOW & WERO).
Additionally, Visa and Mastercard no longer officially call themselves credit card companies. They have heavily invested in open banking (A2A) payments in the USA and Europe.
