Conversational UPI: Can this advanced payment method change the face of digital transactions?

Conversational UPI is an advanced payment method that will open new gateways for next-generation payments. Conversational Payments on UPI will allow users to make voice-enabled UPI payments via UPI apps, telephone calls, and IoT devices (for example, wearables, smart TVs, sensors, smartwatches, etc.).

Amit Kumar, Chief Technology Officer of Easebuzz, said, “Users can now give voice commands to enter UPI PIN, transfer funds and complete the payment process. Functioning through voice recognition technology, it is available in two modes — on-call (through a voice call), and in-app (through any UPI app).”

“The ease of Conversational UPI will enable the penetration of UPI wherein users do not have access to the internet or senior citizens and less tech-savvy individuals,” said Kumar.

Further development on conversational UPI will support regional languages to ensure everyone in the country can use the UPI payment mode.

Kumar said, “Conversational UPI will boost digital payments in small businesses where offline payment share is on the higher side. UPI Conversational enhances user convenience while maintaining high levels of security in digital transactions.”

Security features for conversational payments on UPI include robust voice biometrics for user verification, secure encryption protocols to protect data in transit, and multi-factor authentication to prevent unauthorized access. However, users should also exercise caution by keeping their devices secure and not sharing sensitive information.

Also read:Tax collected at source on foreign travel: All you need to know about TCS, consequences of late, incorrect filing

Also read: Travel credit card applications surge five-fold in 1 year; 22% used it for daily expenses and got 1 domestic flight ticket

Also read: I’m 57 and work for a private firm. How much should I to invest to get Rs 25,000 monthly after retirement?

Worldline, a global payment services firm, unveiled its India Digital Payments Report for H1 2023 (January to June 2023), capturing noteworthy trends and shifts within the digital payments landscape. The report reveals UPI as a huge success and expects it to continue to dominate payments in India.

The report reveals that the number of UPI transactions has rocketed from 151 million in January 2018 to 9.3 billion in June 2023, primarily driven by the growth in Person-to-Merchant (P2M) transactions. In January 2022, P2M transactions accounted for 40.3% of all UPI transactions compared to 57.5% in June 2023, and this percentage is likely expected to keep growing.

Another indicator that prognosticates the future of UPI growth, particularly UPI P2M transactions, is the average ticket size (ATS). The ATS for UPI P2M transactions, which was Rs 885 in January 2022, has reduced to Rs 653 in June 2023, indicating that UPI is now being increasingly used for micro-transactions, indicating a further entrenchment of UPI.

Ramesh Narasimhan, Chief Executive Officer - India, Worldline, said, “Every passing month serves as a testament to the rapid adoption of digital payments. Looking back at the first half of 2023, I find myself even more optimistic about the payment trends unfolding in India: the impressive performance of UPI, the surge in credit card usage, the jump in mobile payments volume, and the uptick in small ticket size of P2M transactions.”

Narasimhan further said, “All this indicates that broad swathes of the country, rural and urban, are embracing digital payments. The allure of digital payments beckons both consumers and merchants alike, evolving it into an indispensable facet.”