The government-promoted payment system United Payments Interface (UPI) could get a big boost as people face difficulties in getting small notes.
“UPI is mobile based fund transfer system developed by National Payments Corporation of India and RBI. It seamless transfers money through smartphone apps using a unique ID, which doesn’t require people to give out their bank account details to others. Due to the cash crunch, the use of UPI app may increase,” said an expert.
People can get virtual ID by downloading a UPI app launched by any of banks and register themselves using their account number.
As UPI has still not beco-me popular, third-party payment wallets have seen a big jump in usage.
Payment wallets like Paytm, IdeaMoney, Airtel-Money, which are alternative to cash transactions, have been experienced higher traffic from people.
According to Paytm, its gateway got about 435 per cent of overall traffic within hours on Wednesday. “Besides the traffic, 200 per cent increased in app downloads, 1,000 per cent increase in add money, 400 per cent in transactions and 30 per cent in saved card category,” the payment gateway said.
Many Bengaluru-based startups and e-commerce companies that allow customers to pay through digital means also expressed their happiness as this move will help them bring more merchants and customers on board.
“This is a master stroke by Prime Minister which will majorly change India’s digital payments infrastructure,” says Sunil Kulkarni, deputy MD of Oxigen Wallet.
