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UPI: Anatomy of a Payment Transaction

timeseriesofindia.com

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Re: UPI: Anatomy of a Payment Transaction

#31

Post by fakedang »

pixelatedindex wrote: post #15
jesuswasjew wrote: post #5

Centralized, kyced, private money transaction network. Is this something good?

It’s extremely good, at least in terms of user experience and how practical it is. Adoption is massive and at small chai shops it makes transactions a breeze, allowing businesses to serve more volume. The downside is making it incredibly frustrating for foreigners to pay using this as it’s tied to your government ID that your bank has authorized.

I mean it's not like foreigners are blocked from using cash at those stores. And if they prefer cards, it's not like the stores that used to accept them stopped accepting them.

Re: UPI: Anatomy of a Payment Transaction

#33

Post by 0x1ceb00da »

rvz wrote: post #32
jesuswasjew wrote: post #5

Centralized, kyced, private money transaction network. Is this something good?

> Is this something good? All good for a central bank digital currency (CBDC) and for creating the digital rupee. Horrible for your bank account.

> Horrible for your bank account

Why? Are you saying that people spend much more because upi has made spending so easy?

Re: UPI: Anatomy of a Payment Transaction

#34

Post by tecoholic »

crop_rotation wrote: post #28
dj0k3r wrote: post #24

Earlier quoted context omitted.

None of them are free, most banks now charge nominally (look at NEFT and IMPS charges). UPI itself is paid off by taxpayers. Also RTGS is the only ISO 20022 complaint payment rail (back when it wasn't globally very common) - something that needs to be appreciated more. People need to realise what NPCI offers is vastly different from what RBI offers. In my opinion what NPCI is offering will end up negatively impacting…

Just for my curiosity, why do you think "what NPCI is offering will end up negatively impacting the general population in the long run."

I would guess NPCI being a private body with transaction charges being borne by the Indian government is a net negative in the long run. It costs everyone. NEFT and RTGS on the other hand is RBI regulated with clear pricing and costs only those involved. The cost structure needs to change, but then, it won’t be possible. To pay 5 rupees for a chocolate with your phone and get even 0.5 added on top would make the consumers switch to cash almost immediately.

Re: UPI: Anatomy of a Payment Transaction

#35

Post by agnishom »

GZGavinZhao wrote: post #18

How is this different from Alipay/WeChat Pay in China? Handling transactions of this volume is an amazing technological feat, kudos to the team! However, I don't think this mobile QR code paying system is anything novel. Alipay rose to popularity much earlier (I can't recall exact when, but it was already super popular in ~2010, and definitely ubiquitous by 2015).

The main difference is that the core API is public infrastructure (run by a government authority). The apps are run by different companies but the backbone is interoperable by design

Re: UPI: Anatomy of a Payment Transaction

#36

Post by blackoil »

tecoholic wrote: post #34
crop_rotation wrote: post #28

Earlier quoted context omitted.

Just for my curiosity, why do you think "what NPCI is offering will end up negatively impacting the general population in the long run."

I would guess NPCI being a private body with transaction charges being borne by the Indian government is a net negative in the long run. It costs everyone. NEFT and RTGS on the other hand is RBI regulated with clear pricing and costs only those involved. The cost structure needs to change, but then, it won’t be possible. To pay 5 rupees for a chocolate with your phone and get even 0.5 added on top would make the cons…

NPCI is a public sector company with partial ownership between 46 banks. Its costs is trivial compared to savings and efficiency it brings in overall system. Cash handling is very costly for entire chain. Printing by RBI, its logistics by banks and handling by vendors.

Apart from that it is formalization of informal economy, govt has better visibility, tax evasion is difficult and people outside financial services can now use it.

Also, like Rupay has charging for transactions abover a certain threshold of value like 10000 will cover some of the costs without reducing the incentive of system.

Think of vaccines, small cost for big savings elsewhere.

Re: UPI: Anatomy of a Payment Transaction

#38

Post by cute_boi »

globemaster99 wrote: post #16
fragmede wrote: post #9

Earlier quoted context omitted.

How is it KYCd yet also private?

It's the intention and use case. The government want to reduce the fund leakages and reduce corruption, directly transfer the money to citizens, reduce transaction costs. Hence it works. The government does not track all the transactions. You need a police FIR, to review these transactions. In short, Indian government does not track or they don't have the scaling to track. But they can do it, if there is any criminal…

> You need a police FIR, to review these transactions.

In India, if you even have a small power you can easily review any transactions...

Re: UPI: Anatomy of a Payment Transaction

#40

Post by dominotw »

elendilm wrote: post #17

I have the utmost respect to people who makes UPI work. Made even the old people in the nation completely go digital for payments - a feat unparalleled in the world.

it worked because india never had credit card payments( at scale ) . they went straight from cash to digital payments.
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