Need to know Unified Payments Interface (UPI) architecture will allow payments via aliases which don’t need account details, and enable pull payments. The UPI will effectively turn a bank account into a wallet with a simplified two-factor authentication and eliminates the need to store funds in a wallet. However, Oxigen's Sunil Kulkarni says it is not as simplistic. Wallets which focus on remittances by loading cash and converting them to digital money will not be affected. While wallets whose businesses focus on digital and convenience will be affected. Paytm also explains the UPI helps its payments bank business. The Unified Payments Interface (UPI), which was launched earlier this week, is a payments architecture poised to change payments in the country and will allow users to make a transaction without divulging their account details and IFSC codes through aliases (such as shashidhar@hdfcbank) and will allow pull-based payments. However, there are many reports which say that the UPI would effectively kill wallets' business (read here, here and here). The UPI would effectively turn a bank account into a wallet and would provide the convenience of the same. How UPI payments could replace wallets Banks would integrate the UPI app with their own mobile banking app which will allow us to create aliases directly linked to our bank accounts and store the aliases of people who we want to transact with. This could be people or businesses or entities we frequently transact with. Thereafter, paying any of these persons or entities will just involve sending a text on this app…
