Sarvatra Technologies: Mandar Agashe, Founder, Vice-Chairman and MD
This year interestingly, despite record purchase transactions during Diwali, cash in circulation did not increase, a rare occurrence since 2014 clearly indicating - digital payments have become the mode of choice for masses. Considering more than 50% of the transactions conducted on UPI are of value below Rs. 200, low value transactions, there is significant utilisation of system capacity and resources, leading to customer inconvenience owing to connectivity issues and transaction failures. Therefore enabling small value transactions through an 'On-device' wallet in UPI app will not disturb the banking system every time a transaction is conducted, which will help conserve banks' system resources. Additionally facilitating UPI-based digital payment solutions on feature phones will promote wider digitisation offering a quantum leap in driving small value transactions especially in the tier II, III markets.
Today UPI is the single largest retail payment system in the country and has risen by almost 70 times in the last 4 years growing into an institution itself. Therefore as the industry has matured the current move of upscaling the transaction limit for payments from 2 lakh to 5 lakh will help encourage retail investors to comfortably indulge in high-value transactions such as Retail Direct Scheme and IPO applications.
Additionally, the paper seeking feedback on issues related to charges applicable on digital payments will further drive collaboration among stakeholders to resolve challenges and take timely measures to make digital transactions affordable to end users and economically remunerative for service providers.
PayNearby: Anand Kumar Bajaj, Founder, MD and CEO
The pandemic boosted the need for contactless payments and led to the increased adoption of UPI as the preferred digital mode of payment, even at the last mile. Today, UPI has become the single-largest retail payment system in the country in terms of volume of transactions, signifying its wide acceptance, particularly for small-ticket transactions. The recent announcement to enhance the transaction limit for payments through UPI from Rs 2 lakh to Rs 5 lakh will fuel the use of UPI by retail investors. This move will further deepen the reach of digital payments in the country and make them more inclusive, catapulting us towards a less-cash economy. In addition, the idea to launch UPI-based payment products for feature phone users will offer ease of transactions for consumers, facilitate greater participation of retail customers across various segments, and enhance the capacity of service providers.