Navigating the Digital Payments Revolution in India: Exploring UPI, Payment Links, and Emerging Solutions

As technology rapidly advances, it has ushered in new ways of completing financial transactions. Gone are the days when transactions were only possible through physical cash, bank transfers, or checks. With the advent of mobile-based payments, the way we pay for goods and services has changed drastically. Mobile-based payments refer to the use of mobile phones and other handheld devices to make payments for goods or services. This mode of payment has seen rapid growth globally, with over two billion people using mobile-based payments to make purchases.

Two billion people use mobile-based payments

According to data, over two billion people across the globe use mobile-based payment methods to make purchases. This represents a significant shift in the way people make transactions. The use of mobile-based payments has been driven primarily by the convenience they offer, with customers no longer having to carry large sums of cash or cards around.

UPI is a preferred mode of digital mobile-based payments in India

In India, UPI (Unified Payments Interface) is perhaps one of the most preferred modes of digital mobile-based payments. Launched in 2016, UPI is a real-time payment system that allows users to transfer money between banks instantly. The system has gained traction in India, with its popularity fueled by its simplicity, convenience, and speed.

Staggering statistics about UPI transactions in March 2023

In staggering statistics published by NPCI, it has come to light that in the month of March 2023, the UPI transaction volume was ₹14,10,443.01. This demonstrates the widespread adoption of UPI in India, with the system being used by businesses of all sizes and individual customers.

Payment Links and Their Use in Mobile-Based Payments

Payment links are URLs sent through SMS, which redirect the customer to the payments page to complete a purchase or make a transaction. Payment links are becoming increasingly popular as they allow businesses to avoid the expenses that come with maintaining a mobile app. Customers also find payment links convenient as they require no installation and can be easily accessed through their mobile phones.

Setu’s UPI-based payment collection solution

Setu, a fintech API infrastructure startup in India, provides a UPI-based payment collection solution for mobile payments. The solution is designed to increase the speed of transactions, lower costs, and ease the burden on businesses that would otherwise have to build mobile apps. Setu’s UPI-based payment collection solution has revolutionized mobile payments in India, with more businesses adopting this faster and cheaper means of collecting payments.

Cards have become a widely adopted payment method

Cards are one of the most widely adopted payment methods in the country. This mode of payment has gained traction mostly due to India’s push towards a cashless economy. Cards have been successful in capturing the middle and upper-class markets but have struggled to penetrate the lower-income groups due to high transaction fees and the lack of a physical bank account.

Bharat Bill Payment System is used for recurring payments

BBPS, an acronym for Bharat Bill Payment System, is an integrated mobile payment system designed especially for recurring payments like utility bills and mobile recharges. The system allows users to link their mobile numbers and bank accounts, making it easier to track and pay bills. The BBPS has simplified payments for Indian consumers, who no longer have to line up at offices to pay bills.

eRUPI is a unique mobile-based payment method

eRUPI is a special kind of mobile-based payment method that works like a voucher. It is a QR code or SMS-based payment system that allows users to pay for services using their mobile phones. Initially intended for government welfare schemes, the eRUPI voucher system has been more widely adopted in India due to its convenience and speed.

Pine Labs has been announced as a new payment aggregator

Pine Labs have received an in-principle authorization from the Reserve Bank of India (RBI) to operate as a Payment Aggregator. Payment aggregators are used to streamline the mobile payments process for businesses, allowing them to avoid the need to register with multiple banks.

Mobile-based payments have quickly become a way of life for many people and businesses. They offer convenience, speed, and cost advantages over traditional payment methods like cash or cards. With new solutions and technologies emerging daily, mobile-based payments will only continue to grow in importance as we move forward.

Explore more

Is Bad Data Architecture Stalling Your AI Ambitions?

The corporate landscape is littered with the wreckage of ambitious artificial intelligence projects that were doomed from the start because they were built upon the shifting sands of legacy data systems rather than a rock-solid architectural foundation. While the allure of generative models and autonomous agents captures the imagination of the executive suite, the practical reality of implementation often reveals

Enterprise Software Valuation – Review

The digital infrastructure underpinning the global economy has undergone a radical transformation as enterprise software moves beyond simple automation toward predictive, AI-integrated environments. This transition marks a departure from the legacy models of the past decade, placing a spotlight on how 191 US-listed firms with market capitalizations over $2 billion are being appraised. Current market sentiment focuses on the financial

Why Human Systems Are Essential for Successful AI Integration

The global rush to integrate artificial intelligence into every facet of business operations has led to a paradoxical situation where massive financial injections often result in stagnant growth and technical obsolescence. Across the globe, organizations are pouring billions into advanced algorithms, yet many find that these investments fail to deliver a measurable return. The prevailing assumption that a more powerful

The UN Establishes Global Framework for AI Governance

Secretary-General António Guterres has emphasized that while national actions are essential, global coordination remains indispensable to prevent a regulatory race to the bottom in AI development. This statement resonates deeply as the world faces a critical juncture where the speed of technological advancement consistently outpaces the slow-moving gears of traditional bureaucracy. In 2026, the proliferation of large-scale language models and

Can AI Balance Economic Growth With Global Risks?

The silence of a high-tech laboratory often masks the thunderous impact of its outputs, but today that impact is felt in every coffee shop and boardroom across the planet where silicon chips are redefining human capability. More than a billion individuals have now woven generative models into the fabric of their professional and personal existences, creating a momentum that moves