Introduction: In a significant move to elevate the user experience within the Unified Payments Interface (UPI) ecosystem, the National Payments Corporation of India (NPCI) issued a groundbreaking circular, NPCI/UPI/OC-183/2023-24, on 13th December 2023. This circular introduces a paradigm shift by allowing the linking of multiple payment instruments and account types on UPI, transforming the landscape of digital transactions. In this article, we delve into the details of the circular, exploring the objectives, guidelines, and the expected impact on UPI users and merchants.
Detailed Analysis:
1. Comprehensive Payment Options: NPCI’s primary objective with this circular is to enhance the UPI payment experience by enabling the linkage of various payment instruments. Users can now link Savings, Current, RuPay Credit Card, PPI Wallet, Pre-sanctioned Credit Line, and e-RUPI Voucher, providing them with a versatile range of payment choices.
2. Guidelines for Merchant Entities: To ensure a smooth transition, merchant acquiring entities, including Payee PSP banks and aggregators, are required to pass the appropriate ‘Feature Supported value’ and other tag values within the response validate address API. This ensures that merchants can seamlessly accept and process payments through the newly introduced payment instruments.
3. User-Focused Approach: Both Payer PSPs and UPI Apps (Bank Apps and TPAPs) play a crucial role in maintaining a superior customer experience. They are mandated to process and display only the payment methods accepted by the merchant during transactions. Clear and effective communication to the customer about the available payment options is emphasized.
4. Full Suite UPI Experience: In line with the operating circular NPCI/2022-23/RuPay/019-A dated 7th December 2022, acquirers are instructed to enable all merchants for a full suite UPI experience across all UPI payment account types. This step ensures uniformity and a comprehensive UPI payment process for users.
Conclusion: NPCI’s move to allow the linking of multiple payment instruments on UPI marks a revolutionary step toward providing users with a more versatile and comprehensive payment experience. The guidelines outlined in the circular aim to streamline the implementation process for merchants, ensuring a seamless transition. As the UPI ecosystem evolves, users and businesses can anticipate a more dynamic and user-friendly digital payment environment.
*****
NPCI*
NATIONAL PAYMENTS CORPORATION OF INDIA
NPCl/UPI/OC-183/2023-24 Dated: 13th December 2023
To
All Members of UPI,
Dear Madam/Sir,
Subject: Enhancing UPI Payment Experience
To improve customer experience, NPCI has allowed linking of multiple payment instruments/account types on UPI including Savings, Current, RuPay Credit Card, PPI Wallet, Pre-sanctioned Credit Line, e-RUPI Voucher etc. This circular outlines the first set of compliances towards the objective of enhancing UPI payment experience.
During the phase of educating and enabling merchants on multiple payment instruments, it is imperative to maintain superior customer experience while performing UPI transaction.
To ensure the same;
1. All merchant acquiring entities (e.g., Payee PSP banks, aggregators, etc.) shall pass the appropriate ‘FeatureSupported value’ and other respective tag values within the response validate address API.
2. The Payer PSP and UPI Apps (Bank Apps and TPAPs) shall process the respective value(s) and only show the payment method(s) which are accepted by merchant to the customer while making a payment. UPI Apps shall also ensure appropriate communication to the customer.
3. Acquirers to enable all merchants for a full suite UPI experience across all UPI payment account types as per operating circular NPCl/2022-23/RuPay/019-A dated 7th December 2022.
The respective ecosystem members are requested to adhere to above latest by 31st January 2024.
The content of the circular to be noted for implementation and requisite information to be disseminated to all concerned officials.
Regards,
SD/-
Kunal Kalawatia
Chief of Products
1001A, The Capital, B Wing, 10th Floor,
Bandra Kurla Complex, Bandra (E), Mumbai 400 051
T: +91 22 40009100 F: +91 22 40009101
contact@npci,orgin www.npci.org.in
CIN: U74990MH2008NPL189067
