Impact of UPI Payment on Plastic Money

Shiksha Tiwari*, Mr. Arshad Ali Siddique*

Student, School of Finance & Commerce, Galgotias University, Greater Noida.

Professor of Department of SFC, Galgotias University, Greater Noida.

 INTRODUCTION

Plastic money can be said as using of plastic cards such as debit/credit cards in the area of electronic payments, with the goal of removing about the need for customers to carry actual paper money when completing process and activities. Debit cards, credit cards, Money access cards, client cards, key cards, and Cash cards are all examples of plastic money. The sole goal about having these cards is to make it easier for clients to make huge payments and to ensure their personal safety.

Barclays in London would be the one to introduce the plastic card in 1967, subjected to Chemical Banks in New York in 1969. The establishment of a bar code together with unique identifying numbers was a watershed moment. In 1973, a dedicated hardware component was introduced in addition to making secure transactions utilising microchip technology, which was an important moment in the history of plastic money. Payment systems were then developed in the late 1970s and became popular in the mid-1980s.

The Unified Payments Interface (UPI) is a system that combines many banking services, smooth fund routing, and merchant payments into a single mobile application (of any participating bank). It also handles "Peer to Peer" collection requests, which can be scheduled and paid according to need and convenience.

In light of the foregoing, the National Payments Corporation of India (NPCI) undertook a test launch with 21 member banks. Dr. Raghuram G Rajan, Governor of the Reserve Bank of India, launched the pilot on April 11, 2016 in Mumbai. Since August 25, 2016, banks have been uploading their UPI-enabled apps to the Google Play store.