Stablecoin Payment Accounts are here.Request Early Access →
Unified Payments Interface (UPI) is a real-time payments system for mobile applications. Designed and launched by the National Payments Corporation of India (NPCI) in 2016, UPI facilitates instant money movement between bank accounts, 24x7x365.
UPI is currently regulated by the Reserve Bank of India (RBI) and is widely utilized for both B2B and P2P payments. In 2021, $940 billion dollars was moved via UPI; in 2022, the average monthly transaction count was over six billion.
How does UPI work?
With UPI, users can access multiple bank accounts in a single mobile application, allowing them to move money in real time. This technology has served as a model for other notable payment systems—as Google CEO Sundar Pichai shares, his team built Google Pay based on the UPI stack.
Once they’ve set up a profile, users of UPI are not required to enter personally identifiable information (PII) like bank account details to make transactions. Because they use a pin code instead, UPI is more secure for users than other mobile payment methods.
The UPI system allows for both push and pull payments; users can issue a pay request to send funds to an intended payee, or a collect request when requesting funds from an intended payer.
For a pay request (to push funds):
- A user logs into the UPI app and choses to send money/payment.
- They enter the payee’s virtual id, followed by the amount being debited. The payer then selects the account funds will be drawn from.
- After reviewing a confirmation screen with payment details, the payer enters their pin to initiate the transaction. They will then receive either a success or failure message.
For a collection request (to pull funds):
- A payee logs into the UPI app and choses to collect money (i.e., an RFP).
- They enter the payer’s virtual id, followed by the amount being credited. The payee then selects the account where funds should be deposited.
- Once the payee confirms transaction details, the payer will receive a mobile request for payment. When they open the notification in their UPI app, the payer can review the request and either accept or decline it.
- To accept the request for payment, the payer will enter their pin. Both parties will then receive a notification once the payment is completed.
UPI enables QR codes and powers multiple use cases, from merchant over-the-counter sales to recurring bill pay for services like utilities. The UPI application also includes banking features like the ability to view account balances.
Where is UPI available?
The global arm of NCPI, the National Payments Corporation of India International Payments (NIPL) has successfully expanded UPI internationally, with support from RBI. UPI is currently available in 10 countries spanning Asia and Europe. India is also in talks with 30 countries to further potential expansion.
Try Modern Treasury
See how smooth payment operations can be.
Learn
Learn how money moves throughout different countries around the world.
A Canadian EFT (or Electronic Funds Transfer) is a bank-to-bank transfer in Canada, similar to ACH in the US.
Part of the FedACH system, FedGlobal ACH offers low-cost and efficient cross-border ACH payments.
A SWIFT code, also known as a SWIFT ID or Bank Identifier Code (BIC), is a unique 8-11 character code assigned to a bank for SWIFT wire transfers.
US companies moving money internationally will likely weigh the pros and cons of SWIFT vs. Global ACH when it comes to attributes like speed and cost.
Payment rails are the underlying systems and networks that facilitate the movement of funds between parties in financial transactions.
Pix is Brazil’s instant payment platform that launched on November 16, 2020. Created and managed by the Central Bank of Brazil, Pix enables fast payments and transfers at any time, year-round.
SWIFT payments or international wires are global payments made through the Society for Worldwide Interbank Financial Telecommunication (SWIFT) network.
Global ACH can help companies move money from US-domiciled accounts across borders using local rails. Learn how and when to use this payment rail.
The Office of Foreign Assets Control (OFAC) is a financial intelligence and enforcement agency under the jurisdiction of the US Treasury Department.
Real-Time Gross Settlement (RTGS) is a system for electronic payments between two banks, where the transactions process and settle in real time rather than being batched.
TARGET Instant Payment Settlement (TIPS) was launched by the Eurosystem in November 2018 as a market infrastructure service that settles instant payments.
An International ACH Transfer—also known as Global ACH—is an ACH payment made cross-border from a US-domiciled account.
Originally known as Bankers’ Automated Clearing System (BACS), BACS Payment Schemes Limited clears and settles direct debit, BACS direct credit, and current account switch service in the United Kingdom.
The Bulk Electronic Clearing System (BECS) is a streamlined electronic payment method used to process low-value, bulk transactions in Australia and New Zealand.
The Faster Payments Service (FPS) is a banking service in the United Kingdom. The FPS was instituted in order to reduce payment times between accounts held by different customers.
The Single Euro Payments Area (SEPA) is a system of payment schemas that standardizes cashless transactions in euros.
Unified Payments Interface (UPI) is a real-time payments system for mobile applications designed and launched by the National Payments Corporation of India.