Ecommerce players root for UPI as it might reduce COD payments

Editor | Sep 10, 2020

Etailers believe that if all goes well, then implementation of Unified Payments Interface (UPI) developed by the National Payments Corporation of India (NCPI) will reduce the percentage of cash-on-delivery payments.

What’s UPI?

Unified Payments Interface (UPI) is a system devised to simplify and streamline payment transactions and make it as cashless as possible. Expected to be launched in two-three months, UPI will act as an additional layer of payments architecture built upon the IMPS mobile payments system.

Once a reality, this interface will allow users to send & receive money across banks from their smartphones using their mobile phone number, Aadhaar unique identity number, email address or virtual payments address without the hassle of feeding bank account details.

Nandan Nilekani, the former Chairman of UIDAI and an advisor to NPCI had said, “Need to make sure there is interoperability of all payments. Unified layer will allow application providers to use mobiles, provide integrated payments on new devices, connect all infra and allows people to innovate on top of that- in the coming this months, rolling this out and getting people to adopt it will be important.”

How will UPI result in less COD payments?

Many online buyers prefer COD as it’s easy and convenient, but etailers find it tough to keep track of cash transactions and would much rather prefer online payments. UPI removes the anxiety, complexity and numerous steps from online payments such as adding card/account details. This can lead to buyers opting for online payments over COD.

“It hides the complexity from the customer. Your email ID or mobile becomes the front and nobody except you knows what is linked to it at the back end it could be a wallet or a bank account”, shared Amit Lakhotia, Vice-President –Payments at Paytm.

With the rise of e-wallets and plastic money, UPI can end up being the solution etailers and online shoppers were looking for from a long time.


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Editor team is specialized in introducing the marketplace content targeting the Indian online sellers. They plan and coordinate to bring the appealing content for the small businesses on how to partner with the e-commerce sites like Amazon and Flipkart and strategies for improving their online business. 




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