UPI Plug-in, a payments solution that was recently introduced by the National Payments Corporation of India (NPCI), allows users to make payments for their orders and services availed without having to leave the app that they are currently using. The feature is also referred to as a merchant software development kit (SDK), and helps online businesses add a virtual payment address.

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Why the need for UPI Plug-in?

The UPI Plug-in makes payments easier. For example, while ordering food on an online delivery app, once the buyer selects UPI as the mode of payment, the app takes them to another payment gateway or application to complete the payment. Once the payment is done they're redicrected back on to the delivery app after the completion of successful transaction. This to-and-fro is considerably shortened by the UPI Plug-in.
 
The UPI Plug-in makes that process simpler by just eliminating the use of a third application. This is done by integrating UPI into the app, which allows users to make payments with just a few taps, ensuring faster and seamless transactions. 

How UPI Plug-in works?

While buying goods and services, the buyer only has to choose a UPI account on the merchant's payment page and select it as the preferred payment option.

The buyer is then redirected to the UPI payment window where they have to enter the MPIN that's embedded into the merchant's page through UPI Plug-in.

Upon clicking and submitting they're redirected to the confirmation page upon completion of transaction.

 

Commenting on the way UPI Plug-ins are making virtual payments simpler and quicker, Sachin Castelino, Chief Strategy & Transformation Officer of In-Solutions Global Ltd - a FinTech service provider and payments facilitator, says that as a convenient and secure way to make payments, UPI plug-in is expected to become more popular in the future. “This innovation is surely in the path for a disruptive future, and the payment ecosystem may get simpler and faster with its advent,” he avers.

Reflecting on the advantages that UPI Plug-in has over other payment methods, Sachin says that it is extremely convenient as users do not have to switch between apps to make payments. Adding that it is also secure, as payments are made using UPI, a secure payment system. 

"Additionally, UPI plug-in is interoperable, which means that it can be used to make payments to anyone with a UPI account, regardless of the bank they are with," he informs.

In a blog post, Rahul Chari, the co-founder and CTO of PhonePe, had stated that the UPI Plug-in model would put an added onus on merchants as they would have to prioritize the new integration on to their businesses. And it would require them to take some time off their essential business operations and devote the time saved to it, Chari said.

Experts suggest that UPI third-party apps could potentially lose a considerable portion of their market share with the introduction of this tool. “How this development pans out for industry players needs to be seen. The move would definitely enable faster transactions and seamless user journeys for customers," Sachin sums up saying.