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Stream/Area:
-
Subject:
-
Paper ID:
IJSREM62649
Volume:
10 |
5 |
May 2026
Pages:
1-5
Publication Frequency:
Monthly (12 issues per year)
License:International Journal of Scientific Research in Engineering and Management follows the Creative Commons Attribution 4.0 (CC BY 4.0) License, allowing free use and distribution with proper attribution.
Master of Science (MSc) in Computer Science
PVG's College of Science & Commerce
Master of Science (MSc) in Computer Science
PVG's College of Science & Commerce
Master of Science (MSc) in Computer Science
PVG's College of Science & Commerce
This paper investigates the paradigm shift in digital commerce precipitated by India’s Unified Payments Interface (UPI), juxtaposing its architecture and adoption against global payment standards. While traditional Western markets rely heavily on card network rails (Visa/Mastercard) that entail significant Merchant Discount Rates (MDR) and multi-step verification, UPI has democratized real-time, account-to-account (A2A) settlements. Developed by the National Payments Corporation of India (NPCI) [1], UPI now processes over 20 billion transactions monthly [2], fundamentally altering merchant economics. Utilizing a mixed-methods research design—combining secondary volumetric data analysis from NPCI and global fintech reports [3][4] with a primary survey of 40 e-commerce stakeholders—this study quantifies the "UPI Advantage." Results indicate that UPI reduces checkout abandonment by approximately 12% and slashes payment processing costs by nearly 95% compared to international card rails. Furthermore, the paper analyzes the geopolitical expansion of UPI (NIPL) into markets like Singapore, UAE, and France [2], identifying the friction points of cross-border interoperability. The findings offer a strategic roadmap for IT consultants and policy frameworks for global central banks considering similar public-good payment infrastructures.
KEYWORDS
9. Conclusion UPI has materially transformed the Indian payments landscape by combining low cost, high scalability, and instant settlement [1][2]. Indian merchants benefit from improved conversion and lower costs. Globally, UPI’s architecture provides a blueprint for central banks considering instant public payment infrastructure, but cross-border regulatory and FX constraints remain barriers [3][5].
Reference Links [1] National Payments Corporation of India (NPCI) – UPI Product & Architecture Page Official NPCI page and performance data showing transaction volumes and UPI growth. https://en.wikipedia.org/wiki/Unified_Payments_Interface (summary of NPCI’s role, internationalization, and architecture) Additional example reporting UPI volumes (for direct volume figures): https://www.businesstoday.in/personal-finance/banking/story/upi-hits-record-754-mn-transactions-in-a-single-day-monthly-volume-surges-to-207-bn-in-october-500469-2025-11-01/ (NPCI data on 20.7 billion transactions) [2] Press Information Bureau – UPI Growth & Cross-Border Expansion Reports Official Government press release describing NPCI International’s cross-border initiatives. https://www.pib.gov.in/Pressreleaseshare.aspx?PRID=1911736 (UPI cross-border partnership details) [3] Capgemini – World Payments Report 2025 Global payments industry report that contextualizes instant payment systems like UPI. https://www.capgemini.com/in-en/insights/research-library/world-payments-report-2025/ [4] McKinsey & Company – Global Payments Report 2025 Comprehensive analysis of global payments rails, trends, and competitive dynamics. https://www.mckinsey.com/industries/financial-services/our-insights/global-payments-report [5] World Bank – Remittance Prices Worldwide Report Official dataset on remittance costs and trends, useful for cross-border cost comparisons. https://remittanceprices.worldbank.org/ (Remittance Prices Worldwide homepage + data download) Optional Supporting Sources (not in your original list but used in paper context) • Countries where UPI payments are accepted (India travel / cross-border acceptance): https://paytm.com/blog/payments/upi/pi-accepted-countries-list/ • Example of cross-border UPI expansion news (Malaysia / Singapore): https://timesofindia.indiatimes.com/business/india-business/upi-acceptance-in-malaysia-soon-following-npci-tie-up-with-duitnow/articleshow/128247972.cms • Reuters report on PayPal and UPI global integration: https://www.reuters.com/world/india/paypal-launch-cross-border-platform-with-link-indias-upi-payments-system-2025-07-23/
Publication Date
5/6/2026
Peer Review Type
Double-Blind Peer Review
Review Rounds: 2
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Conflict of Interest
The authors declare no conflict of interest related to this research work.
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No funding information available for this research.
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