Unified Payment Interface (UPI) is one of the payment systems that allow users to do peer-to-peer transactions and merchant transactions with the help of a QR code using a mobile device. These transactions are instant and just require the QR code or another person's mobile number (provided that the mobile number is already registered for UPI.) This removed the requirement to know the other person's bank details to add another person's bank account as the beneficiary before a transaction can be done between them. By just knowing the other person's registered UPI phone number, digital payment can be done. It is convenient for everyone as I think nobody remembers their bank account number by heart though everyone remembers their phone number.
Since UPI allows microtransactions it really changed the way of payment in India, where a street hawker is also able to accept digital payment and it really removes the need of keeping cash with the person. Also since the payment is now digital and using the interface//network provided by the government and banks, it really tightens the financial scrutiny without even deploying any other infrastructure.
This seamless transaction is not only convenient but they are more secure than card payments and it is really changing the habit of users of using UPI instead of doing the card payments.
This system is now live in many countries but I am looking forward to when this can integrate all of the world as a common payment method where the international traveler can use UPI to pay in any part of the world from the currency of their choice to the currency of the other peer/merchant.
One can say that crypto is already doing this job but I do not see their outreach in the government system and in most of the country it is not considered as legal tender for payment. I am hoping that UPI may really put a dent in debit card payments in the future and will considerably decline the use of ATM in the future. I see more support for UPI as it is a more convenient, instant, and greenest form of digital payment.
