Working of UPI and it’s

impact on E-Commerce
Unified Payment Interface (UPI) is revolutionizing the way we make
online transactions. Let's explore how this innovative payment system is
changing the face of e-commerce.
Introduction to UPI
What is UPI?
Launched in 2016 by the
National Payments
Corporation of India, UPI is a
real-time payment system that
facilitates electronic money
transfers between banks,
eliminating the need for
traditional payment methods.
How does UPI
work?
Users link their bank account
to a UPI ID, which is used to
make payments and fund
transfers. UPI offers secure
and immediate transactions
through a smartphone app.
Why is UPI
innovative?
UPI is not only a fast and
secure payment system, but
it's also free of charge, which
makes it increasingly popular
with Indian consumers.
How UPI Works for E-Commerce

Simplified Transactions A New Payment Gateway QR Code Integration

UPI allows for a seamless and E-commerce businesses can now UPI has enabled businesses to use
swift transfer of funds between integrate UPI as a payment QR codes as a payment method,
buyers and sellers, without the method, offering customers a fast making transactions even more
need for intermediary services. and secure checkout process. streamlined.
Benefits of UPI for E-Commerce
Reduced Transaction Costs
UPI eliminates the need for transaction
fees, thus reducing the overall cost of
payments.
1 Improved Cash Flow
Businesses can access funds immediately,
thereby increasing cash flow and revenue.
2
3 Increase in Customer Base
With the ease and convenience of the UPI
payment system, businesses can attract
more customers, leading to a steady
increase in sales.
Impact of UPI on E-Commerce Growth

Tremendous Growth Increased Online Rise in Small Business

Since UPI's launch in 2016, the
adoption rate of e-commerce
businesses has increased
significantly.
Transactions
UPI has made it easier for
customers to shop online and has
increased the number of
transactions taking place.
Sales
Small businesses can now
leverage UPI's payment system to
expand their reach and increase
sales through e-commerce.
Challenges with UPI
Integration
1 Technical Challenges 2 Security Concerns

E-commerce businesses have UPI has security measures in place, but

to ensure their system can with a rise in cyber threats,
handle UPI payments. e-commerce businesses must
Integration can be implement additional layers of security
complicated. to protect customer data (like
encryption, multi-factor authentication,
and regular security audits).

3 Customer Education
Not all customers are familiar with UPI. Businesses need to educate their
customers on how to use it. They must invest in clear and user-friendly
instructional materials, FAQs, and customer support
to help their customer.
Case Studies of Successful UPI Integration
Myntra
India's largest fashion e-commerce
platform integrated UPI as a payment
method and saw a surge in customer
engagement and retention.
1 BigBasket
The online grocery store partnered with
UPI to offer customers a seamless payment
2 experience, leading to a significant
increase in sales.
3 Zomato
The food delivery platform saw a 40%
increase in daily order value after
integrating UPI into their payment system.
Future of UPI and E-Commerce
The Emergence of
UPI 2.0
UPI 2.0 is set to be launched
later this year, promising new
features, such as overdraft
facilities, one-time mandates,
and an invoice in the inbox.
The Rise of E-
Commerce
E-commerce in India is
projected to reach $150
billion by 2023, with UPI
playing a significant role in
facilitating online
transactions.
Increased
Collaboration
E-commerce businesses,
banks, and payment
processing companies will
continue to collaborate to
strengthen the UPI payment
system in India.
THANK YOU!

PRESENTED BY

- Dipanwita Singha , 2160009

- Soumyadeep Roy , 2160018
- Supriyo Sen , 2160021
- Cindrela Dawn , 2160054