UPI

India’s current population 1.35 Billion Smartphone users in India by the end of 2017 291.6 Million How many adult bank account holders in India(2017) Around 1 Billion phone users Bank Accounts survey by the World Bank Risen from 53% in 2017 to 80% 80%

UPI is built over the IMPS infrastructure What is UPI? Unified Payments Interface (UPI) is an instant payment system developed by NPCI National Payments Corporation of India (NPCI) is the umbrella organization for all retail payment systems in India NPCI Launched RuPay & IMPS IMPS (Immediate Payment Service) is used to transfers funds instantly between bank accounts UPI is built over the IMPS infrastructure

What makes UPI different? Open Source Instant Secure Cheap Open source APIs Partner with the PSPs (Banks) to get their SDKs No need to add payee & beneficiaries Single click authentication & share only vpa 0.5 rupee charge instead of 2.5-5 rupee for IMPS Available 24x7 & a single app for all banks Availability & Utility

Terminologies PSP VPA/Global Address Push/ Pull Single Click 2FA PSP (Payment service provider) Bank built PSP – Baroda pay, Standard Chartered/ Non Bank PSP – BHIM, Tez. Create VPAs in the backend VPA (Virtual Payment Address) Resolved by PSPs, using Address Translation API, @psp handle/ eliminates the use of sharing info like account number/ Global address - Resolved by NPCI, Aadhaar Number & Mobile Number @NPCI handle Push – pay/ Pull – collect financial transactions/ Non financial transactions like generate pin, check balance etc Mobile is first factor which receives the OTP and MPIN is the second factor

Core APIs ReqPay RespPay ReqAuthDetails RespAuthDetails Iinitiating & Processing the transaction RespPay Sending back the response of transaction initiated through ReqPay ReqAuthDetails Translate PSP address and obtain appropriate authorization details In total there are 19 Apis provided by UPI Divided into Core(4) & Meta APIs (15) List psp, list account, check transaction status, Request confirmation RespAuthDetails Sending back the response of transaction initiated through ReqAuthDetails

PAY Remitter Bank Payee PSP Unified Payments Interface Payer PSP 4 ReqPay debit RespPay debit 5 ReqAuthDetails 2 Payee PSP ReqPay 1 RespAuthDetails 3 Unified Payments Interface Payer PSP RespPay 8 ReqTxnConfirmation 9 10 RespTxnConfirmation A B Acquiring Channel (Mobile App/E-Com) ReqPay credit 6 RespPay credit 7 Financial Non-Financial Beneficiary Bank

COLLECT Remitter Bank Payer PSP Payee PSP Unified Payments Interface 4 ReqPay debit 5 RespPay debit D C Payer PSP ReqAuthDetails 2 Payee PSP ReqPay 1 RespAuthDetails 3 Unified Payments Interface RespPay 8 ReqTxnConfirmation 9 RespTxnConfirmation 10 A B ReqPay credit 6 RespPay credit 7 Financial Acquiring Channel (Mobile App/E-Com) Non-Financial Beneficiary Bank

Let’s talk about security Message communication between PSPs and UPI are in XML format over HTTPS and all the messages are digitally signed Private data in the transaction message are over HTTPS on network, Which are encrypted before storing in DB In case of mismatch in the checksum used, the process gets failed & an high level alert must be generated IPs for PSPs and other systems are whitelisted at the firewall level in order to block messages from all non-authenticated sources

No. of banks live on UPI 114 45,845.64 235 Million Transaction Amount (Rs. In Cr.) in July 45,845.64 Total Transactions in July Transaction amount doubled from the month of Feb 18 (19,126.2) 235 Million

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