What is UPI? How India pays instantly from phone to phone

By SendPay Business · · 2 min read

What is UPI? How India pays instantly from phone to phone

UPI (Unified Payments Interface) is India's system for instant bank-to-bank payments by phone. It was launched in 2016 by the National Payments Corporation of India (NPCI) and has become one of the busiest payment systems in the world.

How it worksWhy it took offUPI beyond India

How it works

  1. Link a bank account to a UPI app such as PhonePe, Google Pay or Paytm.
  2. Get a UPI ID, which looks like name@bank, or show a QR code.
  3. Pay by entering an ID, scanning a QR code or picking a contact, then confirm with a PIN.
  4. The money moves between bank accounts in seconds, day or night.

Why it took off

UPI works across banks and apps, is free for most everyday payments, and lets small shops take payments with just a printed QR code. Since 2023 it has handled more than 10 billion payments a month.

UPI beyond India

India has linked UPI with some other countries' fast payment systems, such as Singapore's PayNow in 2023, so people can send money across the border quickly.

Where SendPay fits

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This guide is general information, not legal or financial advice. SendPay Business is a technology company, not a bank, and does not take deposits; regulated services on the platforms are provided by licensed partners. PayPal, Patreon and Substack are named as reference points only and are not affiliated with SendPay Business.