UPI 2.0 may be launched this week: 5 ways the payments system will change

With the fresh version, UPI is making a move from just being a peer-to-peer payments system to become a preferred platform for merchant payments also

The second version of the Unified Payment Interface (UPI) is expected to be launched by the National Payments Corporation of India (NPCI) this week.

Referred as UPI 2.0, the new version of the account-to-account payment platform is expected to come with new features and several improvements.

Going by a report in The Times of India, UPI 2.0 will add a few features to move from just being a peer-to-peer payments system to become a preferred platform for merchant payments also.

Here are some of the changes and new features that UPI 2, according to the report, is expected to come with:

1. Increase in transaction limit: Transaction limits in UPI 2.0 is expected to be doubled to Rs 200,000 from the current version.

2. Overdraft account support: While UPI 1.0 allowed users to link only savings account, the upcoming version will also support overdraft (OD) accounts.

This will allow merchants to take credit (through their OD account) to make a transaction through UPI.

3. Amount blocking feature: UPI 2.0 will reportedly come with an amount blocking feature that will allow merchants to lock a certain amount in a consumer's account and debit it later.

With the addition of this facility, UPI service can essentially be used as a cash-on-delivery option, but on the network.

4. Invoice sending feature: This will be another step towards making the UPI payment more authentic. The new version will allow merchants to send an invoice to any of the UPI apps along with the payment request. 

5. More secure QR-based UPI payments: QR-code will now include a certificate, which will ensure the sender that the money is going into the right account. 

Since its launch in August 2016, UPI has gained acceptance across the country. The digital payments system continued its strong growth in usage in the month of June as volumes rose by more than 30 per cent.

According to the data released by the NPCI for June, transactions rose to 246 million in June as compared to 189 million in May.