The new platform, managed by the National Payments Corporation of India is part of the Reserve Bank of India’s strategy to migrate towards a ‘cashless society’.
Allowing corporates to make and receive payments digitally, it is intended to give clients access to secure and efficient real-time payments.
Corporate customers will be able to efficiently collect payments made by consumers using mobile devices, in a bid to reduce dependence on cash and to offer a more convenient way of making payments.
It should also mean faster realisation of funds and a reduction in cost-in-transit for corporates.
Divyesh Dalal, head of global liquidity and cash management for India at HSBC, said: “The government’s emphasis towards increased digitisation across platforms has paved the way for UPI-led payment solutions.”
“Given the enhanced coverage, interoperability and cost dynamics, we expect the acceptance of UPI-based payments to increase over time. Our UPI offering aims at providing a channel-agnostic collection solution to corporates, which will enable them to drive sales through increased digitisation of flows.”
Umesh Revankar, CEO and managing director of India’s Shriram Transport Finance Company, said the UPI could be a “game changer” that will “enable us to meet our strategic objective of migrating to electronic form, thereby gradually reducing the incidence of paper and cash”.