UpComing UPI version 3.0

UpComing UPI version 3.0 - UPI 3.0, that in the works, is likely to provide goods and services tax benefits to merchants on digital transactions. There is also a proposal to introduce income tax benefits to customers on digital payments, as UPI 3.0 has a provision to include a customer’s PAN details. This committee has also recommended providing cashback incentives to merchants for the adoption of UPI QR. One may recall that the Ministry of Electronics and Information Technology ran a cashback program for customers and merchants in 2019 which accelerated the growth of UPI QRs. Other features - NPCI is in the process of talking to banks and e-wallet companies to integrate both UPI and digital wallets together. Basically, UPI will bow be available on all e-wallets. That way, customers can transfer money from one wallet to another, and transfer money to bank accounts via UPI. Offline Payments with NFC - Soon, businesses can accept online payments via UPI without internet connectivity. This feature will allow payments via UPI using Near-field communication (NFC) between two mobile devices. This works in favour of stores with PoS machines that glitch due to poor connectivity. However, it is possible only once they incorporate NFC in the devices. UPI based Prepaid cards and vouchers - NPCI also aims to allow partner banks to issue prepaid-cards and vouchers on the UPI network to help people make payments. A transaction fee will be applicable for this UPI-based prepaid instrument, which will be made by remitter bank partners to payee payment providers and banks. NPCI might also allow banks to issue the pre-paid instrument through payments apps such as Google Pay and PhonePe.