How Does UPI work? UPI process flow explained !

All about the evolution of UPI and the entire P2P process flow of an UPI transaction. (Unified Payment Interface of India which is the most voluminous instant payment mechanism in the world.

[@anuragpasupureddi3020]

Amazing explaination sir. But one question is if you would have observed, almost all the times we get the success message on the UPI app (eg: phonepe), even before we get the debit message from the bank. Any idea how?

[@truegamer_007]

Message from bank is delayed.

[@TheFintechTechie]

yes, sometimes the SMS from the bank gets delayed due to network congestion or bottlenecks in the core banking application/database

[@Ashk443]

Hindi me smjhne vale jyada log hai

[@anshukandhari]

Good video. Some clarifications on the flow mentioned:
1. Gpay is TPAPs and not PSP. Paytm has a banking license and hence is a certified PSP.
2. The translation request are processed by TPAPs PSP and not by TPAP. E.g. Google has multiple PSPs icici/hdfc etc

[@TheFintechTechie]

Thanks for your valuable feedback.
Yes, Technically yes GPay is TPAP. But as per NPCI API Interface guide, PSPs (Payment System Players) are ."Bank, Payment Bank, PPI, or any other RBI regulated entity that is
allowed to acquire customers and provide payment (credit/debit)
services to individuals or entities."

[@arijitdas9115]

And all this request and response are performing through "API" .

[@MonaHill-x9q]

Davis Amy Hernandez Angela Hernandez Shirley

[@BrowningEmmanuel-p7h]

Davis Jason Jones Timothy Brown Ronald

[@souravchanda9555]

Such an amazing explanation. Just one question- are steps 6b, 7, 8 needed if the address is a global identifier and can be resolved at NPCI end? In this case, can NPCI directly make the debit request?
2) what authentication checks are done at Step 10? Also, Is 4 digit or 6 digit UPI pin gets validated here?

[@TheFintechTechie]

Thanks for your appreciation
All steps/hops are mandatory. Even if it is an internal translate case, it has to go to through the PSP, before NPCI can initiate the Debit request.
The UPI PIN is at PSP's app and not in the core banking interface level. The authentication is step 10 is more technical authentication and not UPI PIN

[@zareensubahaziz512]

Why does NPCI check wity gpay although your account was in patym when there is a non -global identifier?

[@srivatsaswaminathan7592]

NPCI checks with gpay for getting the account details of the payee (beneficiary) since payee is registered with GPAY

[@BarbaraGarcia-q2j]

Jones David Harris Karen Taylor Brian

[@Ashk443]

Hindi me bolo Maharaj

[@TheFintechTechie]

Thanks for the useful feedback. Sure we would start a Hindi channel as well.
Hindi channel June main shuru karenge !

[@pampokes2855]

Brilliant. Nicely explained but pl use simple vocabulary to understand easily without google searching for meaning of words as english language has multiple meanings for the same word.

[@TheFintechTechie]

Noted your valuable feedback

[@yash_guptaofficial5695]

Very useful information
Can i have the presentation link please
Wanted to share this information without other

[@amateur_football9751]

This is unlikely to be implemented in the US, many prefer the anonymity of cash, distrust of the government/banks, also banks make too much money from transactions to give CC's up, also UPI I think is mostly practical for small purchases and for that people already have pay pal

[@TheFintechTechie]

True. Nature of payments are different from India where we have huge amt of small value p2P and merchant payments. Als US card/bank lobby is strong.

[@allworldwithrajat5798]

it means if we do a transaction and the payment also the succcessful but could not credited in receiver account it will either return to remitter account or receiver account 100% confirm????

[@TheFintechTechie]

Yes thats right. If credit fails , the debit account gets reversed

[@MonaHill-x9q]

Hernandez Jose Jones Carol Perez Sharon

[@prahladhegde5935]

What a well explained video! Those diagrams were as clear as crystal, Thanks a lot!

[@TheFintechTechie]

Thanks a lot for the encouragement

[@kunwarjeetspanesar3404]

Very well explained..... crisp and clear. Pls keep up the good work......

[@TheFintechTechie]

Thank you for your kind feedback

[@ramesherrabolu1590]

Thanks for the MSC. Are there UPI apps that allow you to initialize it with using User ID instead of one using Global ID

[@DeepakPardeshi-w2c]

Upi pin is validated by Npci or remitter bank ?

[@TheFintechTechie]

By the remitter bank. Hence the pin is same regardless of the app, as long as the bank is same

[@govindbishnoi5933]

Sir I have a revolutionary idea of upi payments platform, can you tell me which licences will i need for integration npci and what other licences or registrations are required. If you reply it will be much appreciated, thanks in advance ❤❤

[@zenfitteam7622]

In love with this channel... Pls make videos on
1. P2P, P2M
2. Card scheme
3. Network switch
4. How banks disburse loans
5. Cibil
6. PCI-DSS
7. 3DS
8. How does card money transfer work
9. Net banking how it works
10. TPAP
11. Chargebacks

[@TheFintechTechie]

Thanks so much. We would sure look into such topics

[@zenfitteam7622]

Eagerly waiting sir. I hope I become a payment expert in next 30 days with your topics..

[@creativeideas5964]

Perfect!

[@TheFintechTechie]

Thank you

[@TributetoSidhumoosewala1]

I see 3 upis on both google pay and phonepe..why is that? Which one is working out of them?

[@TheFintechTechie]

You may have connected gpay with 3 different banks thats why

[@TributetoSidhumoosewala1]

@@TheFintechTechie I have connected Gpay only with one

[@charchitnirayanwal5199]

Thanks For this great explaination

[@TheFintechTechie]

thanks for your kind feedback. Much appreciated

[@ashwinbenegal]

Very well explained. Carry on the good work.

[@prathameshyadav2001]

Good explaination. Thanks

[@TheFintechTechie]

Thanks for the kind feedback

[@nikhilupadhyay8082]

How does npci know that the payee is using gpay for it to send it to gpay to translate and accept response?

[@TheFintechTechie]

When the payer sends the payment , he would put the payee address as say kumar@okhdfcbank Now this is a UPI handle for gpay. and this would be part of the request to NPCI. So NPCI will route it to Gpay since the UPI handle is Gpay's and the address is a non- global identifier

[@swara5937]

Sir one doubt we put mobile number on gpay for fund transfer...so is this number linked with this vpa address

[@Tulasi-q1p]

४०

[@haritech5455]

Very clear explanation. Really helped.👍

[@TheFintechTechie]

Thanks so much for the feedback

[@arvindnigam6632]

Nicely explained the process.

[@TheFintechTechie]

Thanks so much for your appreciation!

[@jaitank1326]

Where is the role of escrow account here?

[@AbheekGupta-h5b]

Beautiful explanation

[@dke4772]

Very good simple explanation 👍

[@TheFintechTechie]

Thanks for the encouragement

[@krishnamurthymadaraboina1556]

explained very well in less time.

[@TheFintechTechie]

Thanks for the appreciation.

[@amanjain6987]

Great explanation. I have a couple of questions:
Is UPI just IMPS with additional translation step?
Can you also shed some light on how UPI differs from other P2P payment networks used around the world?

[@Tulasi-q1p]

AI

[@SAURABH4731]

Thank you Sir

[@TheFintechTechie]

So nice of you

[@Tulasi-q1p]

पेमेंट failed

[@shreysharma4193]

Amazing job!

[@TheFintechTechie]

Thanks for the words of appreciation!

[@manulgupta1038]

What an amazing video.

[@TheFintechTechie]

Thanks so much for the appreciation

[@babua63]

best video

[@TheFintechTechie]

Thanks for your positive feedback !

[@prashantpacific2575]

Excellent explanation

[@TheFintechTechie]

Thanks for your kind words

[@johnharbartduhlian6126]

Does UPI or NPCL have a stock?

[@TheFintechTechie]

No, not at the moment