UPI has become the most used digital payment method in India. Since its launch in 2016, UPI has dramatically changed how people make payments. The platform allows instant payments using mobile phones, quickly becoming popular among both consumers and businesses. This article examines the major updates and features of UPI and how they have simplified people’s lives.
UPI was introduced in India by NPCI in 2016. It aimed to create a platform that connected various banks, enabling transactions without requiring IFSC codes or account numbers, using only mobile numbers and UPI IDs.
The BHIM app and QR codes were introduced in 2017-18. The BHIM app made UPI accessible, and merchants adopted QR codes for easy payments via mobile number or scanning.
In 2019, UPI AutoPay was launched for recurring payments such as subscriptions, EMIs, and insurance premiums. Users could authorize automatic monthly payments, reducing the need for frequent OTP entries and improving access to digital services.
The COVID-19 pandemic in 2020 increased the use of cashless payments, with UPI becoming common for daily transactions. UPI transactions exceeded 2 billion for the first time in 2020.
In 2021, UPI 123PAY was launched, which enabled UPI payments without internet access. UPI was linked with countries like Bhutan, Nepal, and Singapore, expanding UPI’s reach, especially to the elderly and rural populations.
In 2022, the RBI allowed UPI payments via RuPay credit cards, expanding payment options beyond bank accounts. This integration of cards and UPI made larger transactions easier.
In 2023, AI-based fraud detection was integrated into UPI, increasing security and control over fraudulent transactions, thus protecting users.
In 2024, UPI Lite and Tap & Pay features were introduced. UPI Lite allowed small payments (up to ₹500) without PINs, and NFC technology enabled Tap & Pay, eliminating the need for QR code scans.
In 2025, biometric verification is expected. Users will be able to use face ID or iris scans for payments, eliminating the need for a PIN. NPCI is actively testing this and will roll it out across selected banks and apps soon.
