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FinTech

What is Unified Payments Interface?

Quick answer

India's real-time payment system that lets users instantly transfer money between bank accounts using a mobile phone.

Unified Payments Interface, explained

The Unified Payments Interface (UPI) was launched in 2016 by the National Payments Corporation of India. It links bank accounts to a virtual payment address, such as name@bank, or a phone number, allowing instant transfers at any hour through many different apps.

Users can pay friends, shops, and online merchants by entering an ID or scanning a QR code, then confirming with a PIN. Because UPI is interoperable, a customer using one app can pay a merchant using another. It has become one of the most widely used real-time payment systems in the world and is often cited as an example of digital public infrastructure. Some other countries have explored linking with UPI for cross-border payments.

Related terms

FinTech

Financial technology: software and services that improve or automate financial services such as payments, lending, and investing.

Mobile Wallet

An app or phone feature that stores payment cards, bank links, or balances so users can pay with their phone.

QR Code

A two-dimensional barcode made of black and white squares that stores information such as a web link or payment details for quick scanning.

Real-Time Payments

Payment systems that move money between bank accounts within seconds, at any time of day, every day of the year.

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