With the UPI-PayNow linkage, Indian migrant workers and students based out of Singapore stand to benefit the maximum. Along with students and Indian migrants, UPI and Pay Now Linkage can help businesses in several ways, such as:
Cross-Border Payments Made Faster, More Transparent:
UPI & PayNow Linkage allows businesses to accept instant payments from customers. Without having to necessarily get other payment systems on board for faster payments.
Great Opportunity to Grow Sales
Just to put it in perspective, as per the RBI Remittance Survey of 2021, Singapore accounted for 5.7% of the total inward remittances. Furthermore, the Monetary Authority of Singapore, their equivalent of the RBI in India, claims that the linkage is fully equipped to cater to the growing demands of remittance traffic.
Having the option to pay from the convenience of their smartphone would amplify business opportunities, also leading to greater customer satisfaction and loyalty.
Lower Transaction Fees
Businesses, thus, stand to benefit from lower payment processing fees and can further extend the benefits to their customers in order to boast customer retention and satisfaction.
Record-Keeping Made Easy!
It makes it super convenient for businesses to keep track of their expenditure and revenue. This will further allow businesses of varying scales to better manage their finances and freely pursue growth opportunities.
Advantages for Digital Payment Players in India
In the long term, business-wise, it is anticipated that the affiliation between UPI and PayNow will be advantageous to Indian digital payment players. Here are a few of the main advantages:
New Market Access
Indian digital payment providers will get access to a new market in Singapore thanks to the affiliation between UPI and PayNow. They will be able to reach more customers and grow their business as a result. Because of this connectivity, Indian companies who offer digital payment services will have the chance to explore new kinds of businesses and revenue streams. Imagine Company, which has been debating for some time whether or not to expand into south and Southeast Asia, will now have the opportunity to do so.
Indian digital payment service providers would be able to reduce the costs of international transactions thanks to the connection between UPI and PayNow. In order to conduct cross-border transactions, Indian digital payment providers now have to rely on middlemen like banks or payment gateways. Because of the integration between UPI and PayNow, there will no longer be a requirement for using a middleman, which will result in reduced fees for financial transactions and a significant increase in available working capital.
The combination of UPI and PayNow would heighten rivalry in India’s digital payments market. This would motivate digital payment service providers in India to develop and enhance their offerings in order to remain competitive. Customers, businesses, individuals will ultimately profit from this since it will provide them more choices and better services.
Here’s to futuristic collaborations and evolving technology!
In a nutshell, UPI and Pay Now Linkage can help businesses improve their payment processes, increase sales, and reduce costs, resulting in improved profitability and growth.
The first-of-its-kind UPI & PayNow Linkage has set in motion two very critical developments in the future. Firstly, it will create enough impetus to make UPI transactions more popular and robust throughout the nation. Furthermore, it is also imperative for India to discover similar pivots with other countries. The alliance with Singapore should be followed by more such collaborations with other emerging and leading economies across the globe.
The writer is founder of FidyPay.