Every day for the past seven years, Arun Kumar sets up his fruit stall on a bustling street in Mumbai, facing challenges like potential theft or the risk of authorities dismantling his unlicensed stall.
However, one aspect of his work has become easier over the last four years.
Before the pandemic, cash transactions were the norm, but now everyone pays through UPI, or Unified Payments Interface.
With a simple scan of a QR code, payments are completed within seconds, eliminating the hassle of handling cash and providing change, which has significantly smoothed his business operations.
UPI, introduced in 2016 by India’s central bank and its banking industry, is an app-based instant payment system.
It allows users to send and receive money, pay bills, and authorize transactions with ease, all without needing to enter detailed bank information.
It has gained immense popularity, making India the largest real-time payments market globally. In May alone, UPI processed 14 billion transactions, a sharp increase from the previous year.
Despite its convenience, UPI has also become a target for scammers.
Shashank Shekhar from the Future Crime Research Foundation warns that scammers exploit vulnerabilities in digital payments, tricking users into sharing their UPI pin or creating fake UPI apps to steal sensitive information.
Financial fraud involving UPI has been on the rise, with thousands of cases reported annually.
Victims like Shivkali from Bihar state share their experiences of falling prey to scams, losing money in transactions for goods that were never delivered.
The government and banks are working on improving security measures, but challenges remain in ensuring safe digital practices among users and enforcing robust identity verification processes.
Despite these issues, UPI is seen as a tool for economic empowerment, especially in rural areas where access to traditional banking services is limited.
People like Poonam Untwal in Rajasthan are educating others on the benefits of UPI, helping rural communities engage in digital transactions to support local businesses and economic growth.
Moreover, UPI is expanding internationally, with countries like Bhutan, Mauritius, and even France adopting the system for payments.
This global reach highlights its potential to revolutionize digital payments beyond India’s borders.
In Mumbai, Arun Kumar appreciates the convenience UPI brings to his business but remains cautious about fraud risks.
He hopes for improved security measures to protect small vendors like him from financial losses due to fraudulent activities associated with UPI.
(Source: BBC News)
https://www.bbc.com/news/articles/c288m1km01po