UNIFIED PAYMENT INTERFACE: REVOLUTIONIZING MODERN PAYMENT SYSTEMS

This paper examines the Unified Payment Interface (UPI), a cutting-edge payment system introduced in India by the National Payments Corporation of India. UPI is a mobile-centric, real-time interbank payment platform designed to transform and democratize digital payments in the country. The study delves into the evolution of India's payment systems and provides a comprehensive analysis of UPI's technology, focusing on its architecture and security framework through empirical and theoretical literature. UPI stands out as a major advancement compared to existing payment systems, offering benefits such as reduced costs, user-friendly interfaces, faster settlement times, and robust security measures. With its modular API-based architecture, UPI fosters the creation of innovative solutions for both consumers and businesses. Although still in its early stages, the development of merchantfocused UPI solutions holds the potential to significantly enhance user adoption. By integrating a broader section of the population into the digital economy, UPI could play a pivotal role in advancing financial inclusion in India.