The National Payments Corporation of India has introduced UPI @ PoS, a new in-store UPI solution that is aimed to boost adoption of mobile-based digital payments. The system has been developed by produt solution architect Innoviti in collaboration with initial banking partner Axis Bank, and will roll out at Reliance Retail outlets in Mumbai initially. NPCI aims to have the system adopted nationwide eventually, with all PoS terminals eventually geared to accept mobile-based UPI payments apart from ordinary credit and debit card transactions. Also Read - Top 5 UPI apps you can use to transfer money in India: GPay, Paytm, more
The system works in the same way that you would ordinarily pay using a credit or debit card, although the UPI system maintains a contactless connection. Merchants with PoS machines that are compatible with UPI will now get an option to select UPI for processing the payment. After the amount has been entered, the machine generates a QR code that must be scanned by the customer using BHIM or any UPI-based app. Once this is done, the customer must confirm the details and complete the payment. The PoS machine will then print out a confirmation slip, which serves as proof of purchase to the cashier to then release the goods. This will enable individual customers with a bank account and smartphone to make digital payments at any merchant with a compatible PoS machine. However, existing transaction limits for UPI will apply, meaning that there is an upper limit to the value of purchases you can make even using the PoS method. For amounts greater than the existing limits, you will find yourself needing a credit or debit card to make cashless payments. Also Read - Google Pay, PhonePe and other third-party UPI apps to face 30 percent caps on all transactions
To start with, NPCI has tied up with Reliance Retail for the roll out of the new technology. Starting April, outlets of Reliance Retail in Mumbai including Reliance Fresh, Reliance Digital and Reliance Smart will accept UPI payments for purchases through in-store PoS machines. Reliance Retail intends to roll out PoS-based UPI payments all over the country through its stores in the coming months, and NPCI will also hope that more merchants opt for the solution to make accepting digital payments a bit easier. Additionally, Reliance Retail will be offer 5% cash back on all UPI purchases through the month of April, in order to promote the payment method. Also Read - Exclusive: Jio Pay with UPI now available to Jio Phone users in India, here's first look
Some additional facts were also shared by NPCI; A total of 44 banks now allow UPI for payments and funds transfers, with 35 of those banks having their own apps for processing UPI payments. About 2,20,000 UPI payments are made per day, with 80-90,000 of these being processed using the BHIM app. The average value of these transactions is about Rs 3,000.