Though interoperability is one of the key highlights of the architecture, it does however, pose a new security risk. Currently, there are 21 banks live with UPI applications.
It has already announced its partnership with Flipkart’s PhonePe. Through the partnership with YES Bank, PhonePe will be trying to replace cash on delivery with digital payments for Flipkart, Myntra and newly acquired Jabong.
This is to allow its users to make payments through the Unified Payments Interface. Through this, FreeCharge users will be allowed to load money into their wallets through the UPI option which will be powered by Axis Bank’s SDK. National Payments Corporation of India had said that wallets were not allowed to be a part of the UPI.
The system will allow customers to instantaneously transfer funds across different banks with the use of a single identifier which will act as a virtual address and eliminate the need to exchange sensitive information such as bank account numbers during a financial transaction. 19 banks have partnered with NPCI for the same.