Country’s third largest private sector lender Axis Bank on Friday said it is ready with a Unified Payments Interface(UPI) app, while it also announced a tie-up with digital payments company Freecharge for it.
“UPI is yet to become operational, but we are ready with our application and will have a tie-up with Freecharge right from the start for the UPI-based payments,” its head of cards and payments, Sangram Singh said.
He said according to the UPI’s architecture, the bank’s application, called Axis Pay App, can be used by any other bank’s customer.
Stating that the key difference between the soon-to-be-introduced UPI and the existing mobilebanking is simplicity, Singh said one can do banking transactions using only a single ‘Virtual Payment Address’ (VPA).
He said while transferring money to an account, the sender will not be forced to feed the slew of details like the account number and bank’s IFSC Code, but can transact using only the VPA.
When asked about the business benefit for Axis Bank for facilitating other bank customers’ transactions, he said rather than individual gains, lenders have to first increase the size of the electronics payments first, which accounted for only up to seven per cent of payment transactions.
“Cash still continues to account a bulk of focus, which has to go down and the UPI will be a big step to get it down,” he said.
Singh said he expects the National Payments Corporation of India (NPCI) to go live with the UPI in next few days and Axis Bank will be among the over dozen banks which will go live on it as part of the first phase of the launch.
UPI is a channel that powers multiple bank accounts into a single mobile application (of any bank) of a participating bank, merging several banking features, seamless fund routing and merchant payments into one hood.
It was launched by the Reserve Bank of India Governor Raghuram Rajan along with the NPCIadvisor Nandan Nilekani in April this year.
[Source:-Business Standard]
