The much awaited feature is finally here. Users can now pay at POS terminals using UPI apps, announces NPCI. UPI has been the recent choice of many for enabling faster and easier payments in India. Available both for digital and local store payments, UPI taps right into your bank accounts to offer seamless cashless payments.
UPI is not another wallet app, like Paytm, Mobikwik and the others. It is rather a electronic fund transfer layer that allows free, cashless money transfer. You can relate this to being an improved version of IMPS, and is soon going to be the norm in India for all payments. Read more on UPI and the kinds of UPI apps here. I suggest reading that post before continuing with this.
With the latest announcement now, POS terminals will start accepting UPI payments. Till date, people have been swiping cards at POS terminals to make payments. The launch of UPI is all set to change this time-consuming workflow.
UPI is instant. UPI is easy to use.
This should enable quicker checkouts at your favorite stores.
State your UPI VPA to the store cashier. He enters the bill payment amount on the POS terminal which generates a QR code. This can be scanned by the buyer with the UPI app of his choice. Once she enters her MPIN, the money is debited off her bank account and sent to the cashier’s bank account.
UPI has been dominently used for P2P transfers until now. With the launch of UPI at POS, P2M payments should see a visibly larger transaction volume.
This feature is currently available at Reliance Stores. NPCI is making this available at enterprise stores for the time being. It should be available for SME stores soon.
Similar to POS transactions with credit and debit card payments, NPCI will be introducing a charge for UPI at POS. This should be borne by the user. 0.25% for transactions less than Rs 1000 and 0.65% for the rest, reports MediaNama.