UPI has been the biggest success story which is revolutionising the payments industry in India. But the question is Why UPI is not in USA?
Because UPI has achieved a tremendous growth in a very short period and the world is watching the dominance of UPI in India’s payment industry.
Why UPI is not in USA?
The United States, is considered the undisputed global leader in finance and the hub of financial innovation and growth. But still despite seeing the tremendous success of India’s UPI the question rises that why UPI is not in USA?
Well the government in USA has no direct control over the banking industry like India. The transactions in USA are carried out via FEDNOW which works on the Real Time Gross Payments System (RTGS) and is completely different from UPI.
The American payment ecosystem charge extremely high transaction fees, without any viable alternative for consumers. It could be argued that this oligopoly of card networks is preventing the growth of not just the payment systems in the US, but also hampering economic growth and innovation.
On the other hand UPI allows the users to link their any bank account and make transactions to anyone in any bank account with ease.
Will USA use UPI in future?
Earlier the US Central bank had published in the paper about the recommendations to develop a 24×7 continuous gross settlement administration, supporting quicker payment services in the US.
Google LLC has recommended the U.S. Federal Reserve to implement a real-time payments platform, on the lines of India’s UPI.
The central agency has invited suggestions from all its stakeholders on what the design and features of the ‘FedNow’ Service could look like. The service is likely to get rolled out in 2023 0r 2024.
Responding to it, the Google has recommended India’s UPI model.
Can India’s UPI become a global model?
Seeing the massive success and domination in the digital payments industry, the UPI is fetching the global attention and over 30 countries have expressed their interest in adopting India’s UPI.
Is there a similar system in the world like UPI in India?
As far as I’m aware, I don’t think there is any other system in the world similar and faster to UPI.
Thanks for reading. Hope you got the reason Why UPI is not in USA.