Unified Payments Interface (UPI) - Introduction

UPI is a API protocol developed by the NPCI for interoperable payments in India. This presentation gives an introduction to the UPI ecosystem.

1. Unified Payments Interface (UPI)

2. Push and Pull Payments
Virtual Address
(‘Username@PSPName’)
Transfer using Single
identifier like Aadhaar No
Banks –(Payment Service
Provider) will provide App
to customers of any bank
One App for all transaction
needs
Single Click 2FA
Unified Payments Interface

3. Participants
PAYMENT SERVICE PROVIDER
(PSP)
•PSPs will be banks who
will provide Apps
BANKS
•Merchant or customer’s
bank (account
relationship)
•NPCI provides UPI
interface.

4. Benefits to Banks
Simple
(Single click 2FA)
Universal App for
transactions
Leverages existing
Infrastructure
Secure
Payments basis
Single/Unique
Identifier
Tap C2B segment &
E-Com / M-Com

5. Benefits to Merchants
Seamless fund collection
from customers -single
identifiers
No risk of storing
customer’s virtual
address like in Cards
Tap customers not
having credit/debit
cards
Suitable for e-Com & m-
Com/
Resolves the COD
collection problem
Single click 2FA facility
to the customer -
seamless Pull
In-App Payments (IAP)

6. Benefits to End Users
Privacy
Share only Virtual Address and
no other sensitive information
Multiple Utility
Cash on delivery/bill split
sharing/ merchant payments /
remittances
One Click 2 FA
Authorise transaction by
entering only the PIN
(Biometric to Follow)
Work across various interfaces
Payment request generated on
Web interface; authorized on
Mobile interface (App)
Payment through Aadhaar
Number
Pay using the Aadhaar number
Availability & Security
Available 24*&*365. Customer
does the transaction on his
personal device

7. Transaction Types
Financial Transactions
•Pay Request
•Collect Request
Non-Financial Transactions
•Mobile Banking Registration*
•Generate One Time Password ( OTP)
•Set / Change PIN
•Check Transaction Status
* For mobile numbers already registered with the bank for SMS alerts

8. Authentication
Authentication First TxnAuthorised bySubsequent TxnAuthorised by
1st Factor
Mobile Number
(OTP)
Issuer Device Finger print PSP
2nd Factor PIN or Biometrics Issuer PINor Biometrics Issuer
Single Click 2FA

9. Simple enabling Steps
Step 1
•Download PSP App
and create Profile
Step 2
•Add Bank Account/s
Step 3
•Register for Mobile
banking, if not already
registered / Generate
PIN for Transactions

10. Use Cases

11. Use Case 1 :-Collect Taxi Fare –(Proximity PULL)
12
TAXI PSP APP
sam@ABCbank
Submit
1
•Customers virtual address
•A/C details of taxi driver
2
•Identifies Customer’s PSP ABCbankand
routes to ABCbank
Payee
( Merchant’s) PSP
5
•PSP validates the customer details.
•Send the financial details to UPI for
debit to customer account.
Customer’s PSP
4
•MPIN entered by
Customer
9
•Successful credit
8
•Credit Request
PSP APP
MPIN
Submit
3
•Sends notification for
payment
10
Txn Confirmation
6
Debit
Request
7
•Successful
Debit basis
MPIN
Customer’s
Bank
Taxi Driver’s Bank
Taxi Driver
PSP
11
Response to
Payee
UPI

12. Use Case 2:-Remittance –(Remote PUSH)
13
PSP APP
Enter MPIN
Submit
1
•Captures Receiver
Virtual address.
•Sender enters Issuing
Bank MPIN and
amount
2
•Sender Customer’s A/C
details & MPIN
•Beneficiary’s Virtual Add
3
•Identifies Beneficiary’s Handle. Sends
to Beneficiary Customer PSP Beneficiary
Customer’s
PSP
4
•Beneficiary PSP responds with
financial address of Beneficiary
Customer
Sender Customer’s Bank
5
•Sender Customer’s A/C
details & MPIN
•Debit Request
6
Successful Debit
response
7
•Credit Request
9
Transaction Confirmation
8
Successful
Credit
Enter Beneficiary’s
Details (V.A)
Validates the TXN using Device
finger print –Device ID/App ID,
Mobile Number
10
Txn response
Sender PSP
Beneficiary Customer’s
Bank
UPI

13. Use Cases

14. ITS YOURS…..
UPI