Launch year: 2016
Country: India
Funds raised: None

UPI strenghten the Indian’s financial framework

Concept description

UPI is a platform launched by the Indian state in 2016 as a consequence of  its Payment and Settlement Systems Act (2007) dedicated to create a robust platform of payments and settlements in the country.

The platform backed by the government enables any mobile phone owner to hold one or several bank account directly in its mobile phone and process transactions instantly.

Overall, 56 banks settled in India made their customers accounts available on the platform.

Since it has been set-up in 2016, it enabled to reduce the number of cash transactions and thus increase security.

The platform is particularly appreciated by small merchants as they can accept mobile payments without any fee charged.

It has also been used by the Indian government during the Covid period to send money to street vendors.

Google wrote recently to the Federal Reserve urging it to endorse a similar model for America.

Value proposition

Increased security

  • UPI enables small merchants to receive payments directly on their mobile and be less cash dependent
  • To create an account on UPI, users only have to go to a bank with their Aadhaar card (identification system using the fingerprints and irises)
  • Once account is created, identity of the owner is controlled by the government
  • All the payment layer is controlled by the government


  • Payments are immediate and could be made round the clock, enabling small merchants to better manage their cash flow
  • One application gathering several bank accounts
  • A new feature of the platform will enable lenders to consult history of fund paid and received by customers to make them an offer

Illustration (Video)

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