On the 2nd of August 2021, a new Digital Payment System
– ‘e-RUPI’ was launched by the Prime Minister of India. This system will be utilized to send the government’s monetary benefits to beneficiaries’ mobile phones, directly. Developed by the National Payments Corporation of India, Department of Financial Services, National Health Authority, and Ministry of Health and Family Welfare, the e-RUPI
system does not only render non-transferable service to people but it is also stated to be leak-proof.
Cashless payments have become an appealing payment alternative to billions of people across the globe. Moreover, after the pandemic people have started to embrace digital and contactless payments in both developed and developing economies. According to a recent report, digital payments are anticipated to reach USD 10.5 trillion by 2025. The global digital payment sector has observed numerous innovations in this landscape in the last few years. These include P2P mobile payments, cryptocurrencies, mobile wallets, and real-time payments.
The Government of India has been promoting online payments and ‘Digital India’ has been the guiding force that has helped in switching to online payments. As per a report by ACI Worldwide, by 2025, digital payments in India are anticipated to account for 71.7 percent of the total payments volume.
“India’s journey of creating a digital financial infrastructure has been characterized by collaboration between the government, the regulator, banks, and fintech. This has helped to advance the country’s goal of enabling financial inclusion and also provided rapid payments digitization for citizens. The pandemic has further accelerated adoption of digital payments with many first-time users adopting digital payments and significant uplift by merchants," said Kaushik Roy, VP, and head of product management, Asia, ME and Africa, ACI Worldwide.
e-RUPI is nothing but a digital voucher. This can be redeemed by beneficiaries while making use of