NPCI introduces point-of-sale based in-store UPI solution for payments

NPCI introduces point-of-sale based instore
UPI solution for payments
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.
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.
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 India 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.
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.
Source: http://bit.ly/2pbodFp