{"id":7532,"date":"2025-08-28T12:23:23","date_gmt":"2025-08-28T06:53:23","guid":{"rendered":"https:\/\/zv3d.wpengine.com\/us\/?p=7532"},"modified":"2025-08-29T17:01:27","modified_gmt":"2025-08-29T11:31:27","slug":"reimagining-payment-strategy-with-upi-innovation","status":"publish","type":"post","link":"https:\/\/www.zeta.tech\/us\/resources\/blog\/reimagining-payment-strategy-with-upi-innovation\/","title":{"rendered":"Reimagining Payment Strategy with UPI Innovation\u00a0"},"content":{"rendered":"<h3><strong>Contents<\/strong><\/h3>\n<ul>\n<li><a href=\"#reclaimingcustomermindshareinindiasdigitalpayments\"><strong>Reclaiming Customer Mindshare in India\u2019s Digital Payments<\/strong><\/a><\/li>\n<li><a href=\"#upihasevolvedfrominfrastructuretoanecosystemledbyfintechs\"><strong>UPI Has Evolved from Infrastructure to an Ecosystem Led by Fintechs<\/strong><\/a><\/li>\n<li><a href=\"#thebusinesscaseforreimaginingupi\"><strong>The Business Case for Reimagining UPI<\/strong><\/a><\/li>\n<li><a href=\"#dimensionsofupiinnovation\"><strong>Dimensions of UPI innovation\u00a0<\/strong><\/a><\/li>\n<li><a href=\"#nextstepsforbanks\"><strong>Next Steps for Banks<\/strong><\/a><\/li>\n<li><a href=\"#playingtowin\"><strong>Playing to Win<\/strong><\/a><\/li>\n<\/ul>\n<h2 id=\"reclaimingcustomermindshareinindiasdigitalpayments\">Reclaiming Customer Mindshare in India&#8217;s Digital Payments<\/h2>\n<p class=\"p1\"><strong>The Uncomfortable Truth about Customer Ownership<\/strong>\u00a0<b><\/b><\/p>\n<p class=\"p1\">In a recent workshop with the leadership team of a private Indian bank, I posed a simple question:<\/p>\n<p class=\"p1\">&#8220;You have lakhs of UPI customers transacting on TPAPs using your bank\u2019s accounts. Are you able to meaningfully cross-sell financial products &#8211; insurance, investments, credit &#8211; to them?&#8221;<\/p>\n<p class=\"p1\">The answer was telling.<\/p>\n<p class=\"p1\">UPI now powers nearly 85% of India\u2019s retail digital payments, yet customer mindshare has shifted decisively from banks to third-party apps (TPAPs). A typical user opens PhonePe, Google Pay, or Paytm 25-30 times a month, but rarely visits their own bank\u2019s app.<\/p>\n<p class=\"p1\">The challenge is no longer infrastructure &#8211; it\u2019s experience. Banks risk losing relevance unless they reimagine UPI as a product, build differentiated offerings, and anchor usage back into their apps.<\/p>\n<h2 id=\"upihasevolvedfrominfrastructuretoanecosystemledbyfintechs\">UPI Has Evolved from Infrastructure to an Ecosystem Led by Fintechs<\/h2>\n<p class=\"p1\">When UPI launched, banks viewed it primarily as payment rail infrastructure. Its evolution, however, has been remarkable with continuous product and feature innovation driving an incredible multiplier effect.<\/p>\n<p class=\"divider-line\">Image 1: <span data-teams=\"true\">UPI&#8217;s Evolution and Growth<\/span><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-7533 size-full\" src=\"https:\/\/www.zeta.tech\/us\/wp-content\/uploads\/sites\/2\/2025\/08\/Figure-1_UPI-Evolution-and-Growth.png\" alt=\"UPI Evolution and Growth_Zeta\" width=\"1384\" height=\"687\" srcset=\"https:\/\/www.zeta.tech\/us\/wp-content\/uploads\/sites\/2\/2025\/08\/Figure-1_UPI-Evolution-and-Growth.png 1384w, https:\/\/www.zeta.tech\/us\/wp-content\/uploads\/sites\/2\/2025\/08\/Figure-1_UPI-Evolution-and-Growth-300x149.png 300w, https:\/\/www.zeta.tech\/us\/wp-content\/uploads\/sites\/2\/2025\/08\/Figure-1_UPI-Evolution-and-Growth-1024x508.png 1024w, https:\/\/www.zeta.tech\/us\/wp-content\/uploads\/sites\/2\/2025\/08\/Figure-1_UPI-Evolution-and-Growth-768x381.png 768w\" sizes=\"auto, (max-width: 1384px) 100vw, 1384px\" \/><\/p>\n<p><span data-contrast=\"auto\">Today, UPI processes an average of 19 billion transactions monthly. NPCI&#8217;s ambition is even bolder: scaling to 1 billion transactions daily (30 billion monthly) with a long-term target of 200 billion monthly transactions within three years<\/span><span data-contrast=\"auto\"><a href=\"https:\/\/timesofindia.indiatimes.com\/business\/india-business\/1-billion-transactions-per-day-over-next-2-3-years-fm-sitharaman-holds-meeting-to-review-upi-ecosystem\/articleshow\/120703808.cms\"><sup>1<\/sup><\/a> <\/span><span data-contrast=\"auto\">. As percentage of global real-time payment volume &#8211; UPI accounts for nearly 50% and UPI processes more daily transactions than VISA.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Top 5 banks UPI Ecosystem contribution &#8211;<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<table data-tablestyle=\"MsoTableGrid\" data-tablelook=\"1696\">\n<tbody>\n<tr>\n<td data-celllook=\"0\"><b><span data-contrast=\"auto\">Rank<\/span><\/b><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335551550&quot;:2,&quot;335551620&quot;:2,&quot;335559738&quot;:0,&quot;335559739&quot;:0}\">\u00a0<\/span><\/td>\n<td data-celllook=\"0\"><b><span data-contrast=\"auto\">Bank<\/span><\/b><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335551550&quot;:2,&quot;335551620&quot;:2,&quot;335559738&quot;:0,&quot;335559739&quot;:0}\">\u00a0<\/span><\/td>\n<td data-celllook=\"0\"><b><span data-contrast=\"auto\">\u00a0 Primary UPI Contribution<\/span><\/b><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335551550&quot;:2,&quot;335551620&quot;:2,&quot;335559738&quot;:0,&quot;335559739&quot;:0}\">\u00a0<\/span><\/td>\n<\/tr>\n<tr>\n<td data-celllook=\"0\"><span data-contrast=\"auto\">1<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335559738&quot;:0,&quot;335559739&quot;:0}\">\u00a0<\/span><\/td>\n<td data-celllook=\"0\"><span data-contrast=\"auto\">SBI<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335559738&quot;:0,&quot;335559739&quot;:0}\">\u00a0<\/span><\/td>\n<td data-celllook=\"0\"><span data-contrast=\"auto\">\u00a0 Largest payer-side volume (25\u201327%)<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335559738&quot;:0,&quot;335559739&quot;:0}\">\u00a0<\/span><\/td>\n<\/tr>\n<tr>\n<td data-celllook=\"0\"><span data-contrast=\"auto\">2<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335559738&quot;:0,&quot;335559739&quot;:0}\">\u00a0<\/span><\/td>\n<td data-celllook=\"0\"><span data-contrast=\"auto\">HDFC Bank<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335559738&quot;:0,&quot;335559739&quot;:0}\">\u00a0<\/span><\/td>\n<td data-celllook=\"0\"><span data-contrast=\"auto\">\u00a0 ~19% of total UPI volume (payer and payee)<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335559738&quot;:0,&quot;335559739&quot;:0}\">\u00a0<\/span><\/td>\n<\/tr>\n<tr>\n<td data-celllook=\"0\"><span data-contrast=\"auto\">3<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335559738&quot;:0,&quot;335559739&quot;:0}\">\u00a0<\/span><\/td>\n<td data-celllook=\"0\"><span data-contrast=\"auto\">ICICI Bank<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335559738&quot;:0,&quot;335559739&quot;:0}\">\u00a0<\/span><\/td>\n<td data-celllook=\"0\"><span data-contrast=\"auto\">\u00a0 ~16% of total UPI volume<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335559738&quot;:0,&quot;335559739&quot;:0}\">\u00a0<\/span><\/td>\n<\/tr>\n<tr>\n<td data-celllook=\"0\"><span data-contrast=\"auto\">4<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335559738&quot;:0,&quot;335559739&quot;:0}\">\u00a0<\/span><\/td>\n<td data-celllook=\"0\"><span data-contrast=\"auto\">Yes Bank<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335559738&quot;:0,&quot;335559739&quot;:0}\">\u00a0<\/span><\/td>\n<td data-celllook=\"0\"><span data-contrast=\"auto\">\u00a0 Leading beneficiary bank for merchant payments (\u224840%)<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335559738&quot;:0,&quot;335559739&quot;:0}\">\u00a0<\/span><\/td>\n<\/tr>\n<tr>\n<td data-celllook=\"0\"><span data-contrast=\"auto\">5<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335559738&quot;:0,&quot;335559739&quot;:0}\">\u00a0<\/span><\/td>\n<td data-celllook=\"0\"><span data-contrast=\"auto\">Axis Bank<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335559738&quot;:0,&quot;335559739&quot;:0}\">\u00a0<\/span><\/td>\n<td data-celllook=\"0\"><span data-contrast=\"auto\">\u00a0~10% beneficiary share; growing payer transaction presence<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335559738&quot;:0,&quot;335559739&quot;:0}\">\u00a0<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><span data-contrast=\"auto\">Over 90 % of this transaction volume flows through the top three TPAPs &#8211; PhonePe, Google Pay, and Paytm &#8211; dominating market share. PhonePe, G-Pay, Paytm contributes about 49%, 37% and 7% respectively. What started as payment apps have evolved into comprehensive financial service platforms. For example, Cred is launching co-branded credit cards, offering personal loans, and building a complete fintech ecosystem around their payment interface.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">The customer mindshare has decisively shifted from banks to non-banking entities, not because banks lack capability, but because they don&#8217;t control the customer interface.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<h2 id=\"thebusinesscaseforreimaginingupi\">The Business Case for Reimagining UPI<\/h2>\n<p><span data-contrast=\"auto\">Most banks have already invested in a UPI stack to function as issuers of UPI instruments, while many offer PSP services as well. However, this stack is currently being used only for routing and execution. Banks need to develop innovative issuer-PSP solutions to reclaim leadership in payments.\u00a0<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">This shift will deliver tangible financial benefits for banks by driving:<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<ol>\n<li><b><span data-contrast=\"auto\">Customer engagement<\/span><\/b><span data-contrast=\"auto\"><span data-contrast=\"auto\">: Retaining customers within your own bank rails directly correlates with higher product penetration and customer lifetime value.<\/span><\/span><\/li>\n<li><b><span data-contrast=\"auto\">Cross-selling opportunities<\/span><\/b><span data-contrast=\"auto\">: Your most active customers &#8211; those conducting 25+ UPI transactions monthly &#8211; are prime candidates for insurance, investment products, and credit facilities. Direct access to data on their daily financial behaviour enables more targeted discovery and cross selling.<\/span><\/li>\n<li><b><span data-contrast=\"auto\">PSP fee retention<\/span><\/b><span data-contrast=\"auto\">: Every UPI transaction generates a Payment Service Provider fee. While not substantial per transaction (approximately 10 paise), at scale, this represents significant lost revenue that could offset UPI infrastructure costs.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/li>\n<\/ol>\n<h2 id=\"dimensionsofupiinnovation\">Dimensions of UPI Innovation<\/h2>\n<p><span data-contrast=\"auto\">Banks have superior customer data, regulatory advantages, and existing relationships &#8211; yet they&#8217;re losing ground to focused fintech players. Banks must leverage these advantages and innovate in a strategic manner across three dimensions to reclaim customer mindshare.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<h3><b><span data-contrast=\"auto\">1. Customer Experience Innovation<\/span><\/b><span style=\"font-size: 16px;\">\u00a0<\/span><\/h3>\n<p><span data-contrast=\"auto\">As issuers of UPI payment instruments banks can offer innovative onboarding, controls, instruments and rewards to offer customers compelling propositions. Following are some experiences that can help banks drive deeper customer engagement.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<ul>\n<li><b><span data-contrast=\"auto\">Seamless UPI Onboarding<\/span><\/b><span data-contrast=\"auto\"><span data-contrast=\"auto\"><span data-contrast=\"auto\">: Like push provisioning for cards, enable customers to set their UPI PIN and link accounts to UPI and merchant apps without leaving the bank app.<\/span><\/span><\/span>\n<div class=\"video-container\">\n<p><video autoplay=\"autoplay\" loop=\"loop\" muted=\"\" width=\"300\" height=\"150\"><source src=\"\/wp-content\/uploads\/sites\/2\/2025\/08\/use-case-8.mp4\" type=\"video\/mp4\" \/><\/video><\/p>\n<\/div>\n<\/li>\n<li><strong><span class=\"TextRun MacChromeBold SCXW53326286 BCX0\" lang=\"EN-IN\" xml:lang=\"EN-IN\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW53326286 BCX0\">UPI Transaction Controls<\/span><\/span><\/strong><span class=\"TextRun SCXW53326286 BCX0\" lang=\"EN-IN\" xml:lang=\"EN-IN\" data-contrast=\"auto\"><span class=\"TextRun SCXW53326286 BCX0\" lang=\"EN-IN\" xml:lang=\"EN-IN\" data-contrast=\"auto\"><span class=\"TextRun SCXW53326286 BCX0\" lang=\"EN-IN\" xml:lang=\"EN-IN\" data-contrast=\"auto\"><span class=\"TextRun SCXW53326286 BCX0\" lang=\"EN-IN\" xml:lang=\"EN-IN\" data-contrast=\"auto\"><span class=\"TextRun SCXW53326286 BCX0\" lang=\"EN-IN\" xml:lang=\"EN-IN\" data-contrast=\"auto\"><strong><span class=\"NormalTextRun SCXW53326286 BCX0\">: <\/span><\/strong><span class=\"NormalTextRun SCXW53326286 BCX0\">Offer<\/span> <span class=\"NormalTextRun SCXW53326286 BCX0\">advanced instrument controls, allowing <\/span><span class=\"NormalTextRun SCXW53326286 BCX0\">customers to <\/span><span class=\"NormalTextRun SCXW53326286 BCX0\">enable\/<\/span><span class=\"NormalTextRun SCXW53326286 BCX0\">disable <\/span><span class=\"NormalTextRun SCXW53326286 BCX0\">UPI<\/span><span class=\"NormalTextRun SCXW53326286 BCX0\"> apps, set time-based transaction limits, or require <\/span><span class=\"NormalTextRun SCXW53326286 BCX0\">additional<\/span><span class=\"NormalTextRun SCXW53326286 BCX0\"> authentication for <\/span><span class=\"NormalTextRun ContextualSpellingAndGrammarErrorV2Themed SCXW53326286 BCX0\">high-value<\/span><span class=\"NormalTextRun SCXW53326286 BCX0\"> collect requests after certain hours<\/span><span class=\"NormalTextRun SCXW53326286 BCX0\">.<\/span><\/span><\/span><\/span><\/span><\/span>\n<p class=\"divider-line\">Image 2: <span data-teams=\"true\">UPI Transaction Controls<\/span><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"img-responsive alignnone wp-image-7553 size-full\" src=\"https:\/\/www.zeta.tech\/us\/wp-content\/uploads\/sites\/2\/2025\/08\/deck-1.png\" alt=\"UPI Transaction Controls_Zeta\" width=\"1550\" height=\"794\" srcset=\"https:\/\/www.zeta.tech\/us\/wp-content\/uploads\/sites\/2\/2025\/08\/deck-1.png 1550w, https:\/\/www.zeta.tech\/us\/wp-content\/uploads\/sites\/2\/2025\/08\/deck-1-300x154.png 300w, https:\/\/www.zeta.tech\/us\/wp-content\/uploads\/sites\/2\/2025\/08\/deck-1-1024x525.png 1024w, https:\/\/www.zeta.tech\/us\/wp-content\/uploads\/sites\/2\/2025\/08\/deck-1-768x393.png 768w, https:\/\/www.zeta.tech\/us\/wp-content\/uploads\/sites\/2\/2025\/08\/deck-1-1536x787.png 1536w\" sizes=\"auto, (max-width: 1550px) 100vw, 1550px\" \/><\/li>\n<li><strong><span class=\"TextRun MacChromeBold SCXW151986798 BCX0\" lang=\"EN-IN\" xml:lang=\"EN-IN\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW151986798 BCX0\">Add<\/span><span class=\"NormalTextRun SCXW151986798 BCX0\">-on UPI <\/span><span class=\"NormalTextRun SCXW151986798 BCX0\">Experiences<\/span><\/span><\/strong><span class=\"TextRun SCXW151986798 BCX0\" lang=\"EN-IN\" xml:lang=\"EN-IN\" data-contrast=\"auto\"><span class=\"TextRun SCXW151986798 BCX0\" lang=\"EN-IN\" xml:lang=\"EN-IN\" data-contrast=\"auto\"><span class=\"TextRun SCXW151986798 BCX0\" lang=\"EN-IN\" xml:lang=\"EN-IN\" data-contrast=\"auto\"><span class=\"TextRun SCXW151986798 BCX0\" lang=\"EN-IN\" xml:lang=\"EN-IN\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW151986798 BCX0\"><strong>:<\/strong> Build niche experiences for families and small businesses, allowing them to delegate payments<\/span><span class=\"NormalTextRun SCXW151986798 BCX0\"> or<\/span><span class=\"NormalTextRun SCXW151986798 BCX0\"> create add-on <\/span><span class=\"NormalTextRun SCXW151986798 BCX0\">accounts with unified payments tracking and controls.<\/span><\/span><\/span><\/span><\/span>\n<div class=\"video-container\">\n<p> <video autoplay muted loop playsinline><source src=\"\/wp-content\/uploads\/sites\/2\/2025\/08\/Add-On-UPI-Experiences.mp4\" type=\"video\/mp4\" \/><\/video><\/p>\n<\/div>\n<\/li>\n<li><strong><span class=\"TextRun MacChromeBold SCXW72885216 BCX0\" lang=\"EN-IN\" xml:lang=\"EN-IN\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW72885216 BCX0\">Intelligent Rewards Integration<\/span><\/span><\/strong><span class=\"TextRun SCXW72885216 BCX0\" lang=\"EN-IN\" xml:lang=\"EN-IN\" data-contrast=\"auto\"><span class=\"TextRun SCXW72885216 BCX0\" lang=\"EN-IN\" xml:lang=\"EN-IN\" data-contrast=\"auto\"><span class=\"TextRun SCXW72885216 BCX0\" lang=\"EN-IN\" xml:lang=\"EN-IN\" data-contrast=\"auto\"><span class=\"TextRun SCXW72885216 BCX0\" lang=\"EN-IN\" xml:lang=\"EN-IN\" data-contrast=\"auto\"><span class=\"TextRun SCXW72885216 BCX0\" lang=\"EN-IN\" xml:lang=\"EN-IN\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW72885216 BCX0\"><strong>:<\/strong> Enable real-time reward point redemption during transactions &#8211; imagine completing a \u20b9100 payment using \u20b920 from accumulated reward points and \u20b980 from the bank account seamlessly<\/span><span class=\"NormalTextRun SCXW72885216 BCX0\">.<\/span><\/span><\/span><\/span><\/span><\/span>\n<div class=\"video-container\">\n<p> <video autoplay muted loop playsinline><source src=\"\/wp-content\/uploads\/sites\/2\/2025\/08\/Intelligent-Rewards-Integration.mp4\" type=\"video\/mp4\" \/><\/video>\n<\/div>\n<\/li>\n<li><strong><span class=\"TextRun MacChromeBold SCXW47453202 BCX0\" lang=\"EN-IN\" xml:lang=\"EN-IN\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW47453202 BCX0\">Integrated <\/span><span class=\"NormalTextRun SCXW47453202 BCX0\">Lending on UPI<\/span><\/span><\/strong><span class=\"TextRun SCXW47453202 BCX0\" lang=\"EN-IN\" xml:lang=\"EN-IN\" data-contrast=\"auto\"><span class=\"TextRun SCXW47453202 BCX0\" lang=\"EN-IN\" xml:lang=\"EN-IN\" data-contrast=\"auto\"><span class=\"TextRun SCXW47453202 BCX0\" lang=\"EN-IN\" xml:lang=\"EN-IN\" data-contrast=\"auto\"><span class=\"TextRun SCXW47453202 BCX0\" lang=\"EN-IN\" xml:lang=\"EN-IN\" data-contrast=\"auto\"><span class=\"TextRun SCXW47453202 BCX0\" lang=\"EN-IN\" xml:lang=\"EN-IN\" data-contrast=\"auto\"><span class=\"TextRun SCXW47453202 BCX0\" lang=\"EN-IN\" xml:lang=\"EN-IN\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW47453202 BCX0\"><strong>:<\/strong> <\/span><span class=\"NormalTextRun SCXW47453202 BCX0\">Allow customers to contextually access and activate credit options <\/span><span class=\"NormalTextRun SCXW47453202 BCX0\">like BNPL, <\/span><span class=\"NormalTextRun SCXW47453202 BCX0\">EMI loans or credit lines <\/span><span class=\"NormalTextRun SCXW47453202 BCX0\">while making UPI payments<\/span><span class=\"NormalTextRun SCXW47453202 BCX0\">.<\/span><\/span><\/span><\/span><\/span><\/span><\/span>\n<div class=\"video-container\">\n<p><video autoplay muted loop playsinline><source src=\"\/wp-content\/uploads\/sites\/2\/2025\/08\/Integrated-Lending-on-UPI.mp4\" type=\"video\/mp4\" \/><\/video><\/p>\n<\/div>\n<\/li>\n<li><strong><span class=\"TextRun MacChromeBold SCXW168249368 BCX0\" lang=\"EN-IN\" xml:lang=\"EN-IN\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW168249368 BCX0\">Privacy Protected UPI<\/span><\/span><\/strong><span class=\"TextRun SCXW168249368 BCX0\" lang=\"EN-IN\" xml:lang=\"EN-IN\" data-contrast=\"auto\"><span class=\"TextRun SCXW168249368 BCX0\" lang=\"EN-IN\" xml:lang=\"EN-IN\" data-contrast=\"auto\"><span class=\"TextRun SCXW168249368 BCX0\" lang=\"EN-IN\" xml:lang=\"EN-IN\" data-contrast=\"auto\"><span class=\"TextRun SCXW168249368 BCX0\" lang=\"EN-IN\" xml:lang=\"EN-IN\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW168249368 BCX0\"><strong>:<\/strong> <\/span><span class=\"NormalTextRun SCXW168249368 BCX0\">Offer protection from fraudulent and unsolicited <\/span><span class=\"NormalTextRun SCXW168249368 BCX0\">payment requests and misuse<\/span><span class=\"NormalTextRun SCXW168249368 BCX0\"> of UPI IDs<\/span><span class=\"NormalTextRun SCXW168249368 BCX0\">. <\/span><span class=\"NormalTextRun SCXW168249368 BCX0\">Issue one-time use anonymous VPAs on demand to help customers <\/span><span class=\"NormalTextRun SCXW168249368 BCX0\">complete UPI payments <\/span><span class=\"NormalTextRun SCXW168249368 BCX0\">without revealing their UPI ID<\/span><span class=\"NormalTextRun SCXW168249368 BCX0\">.<\/span><\/span><\/span><\/span><\/span>\n<div class=\"video-container\">\n<p><video autoplay muted loop playsinline><source src=\"\/wp-content\/uploads\/sites\/2\/2025\/08\/Privacy-Protected-UPI.mp4\" type=\"video\/mp4\" \/><\/video><\/p>\n<\/div>\n<\/li>\n<\/ul>\n<h3 class=\"p1\"><b>2. Merchant Acquisition Innovation<\/b><\/h3>\n<p><span data-contrast=\"auto\">With most merchant acquisition being driven by intermediaries, banks can offer innovative onboarding and settlement arrangements, custom payment experiences as well as embedded credit solutions to regain control.\u00a0<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<ul>\n<li class=\"p1\"><b>Current Account Acquisition<\/b>: Use UPI merchant onboarding as a pathway to comprehensive business banking relationships by offering solutions that help merchants manage payment flows to multiple current accounts via one QR.<\/li>\n<li class=\"p1\"><b>Differentiated Merchant Experience<\/b>: Offer value-added services like custom QR code solutions, bulk QR printing, EMI integration at point-of-sale, and instant settlement options for compelling merchant value propositions.<\/li>\n<li class=\"p1\"><b>Embedded Credit Solutions<\/b>: Expand lending to merchants backed by UPI cashflows with integrated lending like merchant cash advance, daily installment loans, etc.<\/li>\n<\/ul>\n<p><span data-contrast=\"auto\">You can view these and other innovative customer and merchant experience use cases in action in our ebook on UPI payment experiences <\/span><a href=\"https:\/\/www.zeta.tech\/in\/10-winning-upi-innovation-ideas-for-banks?utm_source=LinkedInMehulProfile&amp;utm_medium=LaunchBlog&amp;utm_campaign=ReimaginingUPIAnnouncement&amp;utm_id=ReimaginingUPI2025\" target=\"_blank\" rel=\"noopener\"><span data-contrast=\"none\">here<\/span><\/a><span data-contrast=\"auto\">.\u00a0<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<h3><b><span data-contrast=\"auto\">3. Technology Architecture Evolution<\/span><\/b><span data-ccp-props=\"{}\">\u00a0<\/span><\/h3>\n<p><span data-contrast=\"auto\">Most banks currently rely on single-switch architecture for UPI processing. The opportunity lies in implementing intelligent routing capabilities on top of existing architecture to enable:<\/span><\/p>\n<ul>\n<li><b>Dual-Switch Strategy<\/b>: Deploy routers that can dynamically route transactions based on predefined logic; for example, low-value transactions to one switch, salary account-linked transactions to another.<\/li>\n<li><b>Advanced Switching Logic<\/b>: Create rule-based routing for different customer segments, transaction types, or risk profiles.<\/li>\n<li><b>Enhanced Processing Capabilities<\/b>: Build infrastructure that supports complex, real-time decision-making during transaction flow to power advanced UPI offerings to merchants and businesses that deal with high payment volumes.<\/li>\n<\/ul>\n<h2 id=\"nextstepsforbanks\">Next Steps for Banks<\/h2>\n<p><span data-contrast=\"auto\">Key strategic steps for the bank leadership to reimagine UPI:<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><b><span data-contrast=\"auto\">Enhancement of customer experience: <\/span><\/b><span data-contrast=\"auto\">Invest in customer experience innovation that brings transaction volume back to bank rails. Even capturing 50% of current third-party app usage would dramatically improve cross-selling success rates and customer engagement metrics.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><b><span data-contrast=\"auto\">Technology revamp<\/span><\/b><span data-contrast=\"auto\">: Evaluate current UPI switching arrangements and assess opportunities for router implementation. This isn&#8217;t about replacing existing infrastructure but enhancing it with intelligent capabilities.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><b><span data-contrast=\"auto\">Business Model Innovation<\/span><\/b><span data-contrast=\"auto\">: Develop new revenue streams from UPI beyond traditional transaction processing. This includes C<\/span><span data-contrast=\"auto\">redit Lines on UPI, family banking, instant rewards, merchant loans based on UPI cashflows, instant EMI, leverage UPI payments trail to underwrite &amp; cross sell digital financial products are just a few possibilities.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><b><span data-contrast=\"auto\">Organizational Alignment<\/span><\/b><span data-contrast=\"auto\">: Ensure product, technology, and business teams are aligned on UPI as a customer engagement platform, not just payment infrastructure.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<h2 id=\"playingtowin\">Playing to Win<\/h2>\n<p><span data-contrast=\"auto\">The question isn&#8217;t whether banks can compete for dominance in UPI payments, but whether they will choose to do so strategically and aggressively.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">The UPI ecosystem will continue expanding &#8211; international adoption, enhanced credit integration, and new use cases will drive further growth. With the right approach to payments innovation, banks can play a definitive role in this ecosystem.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">The team at Zeta is building UPI solutions that enable banks to compete effectively for payments leadership while maximizing their existing infrastructure investments. If you&#8217;re developing a digital payments strategy for your bank and want to explore how to reclaim customer mindshare in UPI, I&#8217;d welcome a conversation about what&#8217;s possible.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><strong>References<\/strong><\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ol>\n<li>Times of India | <a href=\"https:\/\/timesofindia.indiatimes.com\/business\/india-business\/1-billion-transactions-per-day-over-next-2-3-years-fm-sitharaman-holds-meeting-to-review-upi-ecosystem\/articleshow\/120703808.cms\" target=\"_blank\" rel=\"noopener\">1 Billion Transactions per Day for Next 2-3 Years<\/a> | April 2025<\/li>\n<\/ol>\n<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>UPI is no longer about infrastructure &#8211; it\u2019s about experience. Here\u2019s how banks can turn UPI into a growth platform and reclaim customer primacy.<\/p>\n","protected":false},"author":42,"featured_media":7550,"comment_status":"open","ping_status":"open","sticky":false,"template":"single-new.php","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[61],"tags":[59,29,28,26,60,51,23],"class_list":["post-7532","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-upi","tag-bankinginnovation","tag-digitalpayments","tag-payments","tag-upi","tag-upiinnovation","tag-banking","tag-real-time-payments"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v25.1 (Yoast SEO v25.1) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Reimagining Payment Strategy with UPI Innovation<\/title>\n<meta name=\"description\" content=\"As UPI drives 85% of retail digital payments, banks must reframe it from rail to product to regain relevance and strengthen customer relationships.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.zeta.tech\/us\/resources\/blog\/reimagining-payment-strategy-with-upi-innovation\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Reimagining Payment Strategy with UPI Innovation\" \/>\n<meta property=\"og:description\" content=\"UPI is no longer about infrastructure - it\u2019s about experience. Here\u2019s how banks can turn UPI into a growth platform and reclaim customer primacy.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.zeta.tech\/us\/resources\/blog\/reimagining-payment-strategy-with-upi-innovation\/\" \/>\n<meta property=\"og:site_name\" content=\"Zeta US\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/LifeAtZeta\/\" \/>\n<meta property=\"article:published_time\" content=\"2025-08-28T06:53:23+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2025-08-29T11:31:27+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.zeta.tech\/us\/wp-content\/uploads\/sites\/2\/2025\/08\/image-20250828-104300.png\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"756\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"author\" content=\"Mehul Mistry\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"Reimagining Payment Strategy with UPI Innovation\u00a0\" \/>\n<meta name=\"twitter:creator\" content=\"@zetasuite\" \/>\n<meta name=\"twitter:site\" content=\"@zetasuite\" \/>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"Reimagining Payment Strategy with UPI Innovation","description":"As UPI drives 85% of retail digital payments, banks must reframe it from rail to product to regain relevance and strengthen customer relationships.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.zeta.tech\/us\/resources\/blog\/reimagining-payment-strategy-with-upi-innovation\/","og_locale":"en_US","og_type":"article","og_title":"Reimagining Payment Strategy with UPI Innovation","og_description":"UPI is no longer about infrastructure - it\u2019s about experience. 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