India’s CryptUPI, a popular instant real-time payment system, now leads the way as the most favored payment option for local crypto exchanges. India’s leading trading platform Zebpay recently enabled support for Unified Payments Interface (UPI) applications.
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While other exchanges in India have already integrated support for UPI apps on their platforms, Zebpay’s move will increase numbers dramatically. Those cryptocurrency exchanges that have app support have reported it to be one of the most favored options by customers.
UPI is a digital payments system that allows money transfer via a single mobile application without having to provide an account number or IFSC code. The instant real-time transaction network is backed by the National Payments Corporation of India.
The popularity of UPI-based payment applications has increased exponentially since it was introduced — similar to Bitcoin. At a time when businesses around the world are embracing digital currencies, Indian crypto exchanges are now adopting enabled applications to serve crypto enthusiasts.
UPI-Enabled Apps Gaining Popularity in the Crypto Space
Crypto exchange customers also opt for other payment options such as the National Electronic Funds Transfer (NEFT), Real Time Gross Settlement (RTGS) and Immediate Payment Service (IMPS). However the current growth trajectory indicates the use of UPI for cryptocurrency transactions will skyrocket in the future.
The Indian crypto market is now very competitive, with several major players who want to edge their competitors. In a time when digital currencies are gaining momentum, exchanges in the country want to offer everything they can to make crypto transactions seamless.
Zebpay announced its support for UPI apps on its platform on March 15th, 2018. The announcement read: “We have now started INR deposits via UPI. You can send money to our registered banks using any of the UPI supported apps like Tez, PayTM, and PhonePe.”
According to Sathvik Vishwanath, CEO of Unocoin, a crypto exchange, UPI was always available on their platform as a payment option, but was never promoted — after they presumed it would never get popular. He also stated that other options like NEFT and RTGS were not publicized by crypto exchanges.
Use of other UPI-enabled apps such as Paytm, Google Tez, PhonePe, and BHIM have been available for some time now.
Credit Cards No Longer Part of the Picture in Crypto Market
Rahul Raj, Co-founder of Koinex, another Indian crypto exchange that recently enabled UPI support on its platform, stated:
“UPI is actually one of the most favored methods of deposits on our platform as it is seamless. Since it is tied up with bank account and mobile number, and all crypto asset exchanges want deposits to come from linked bank accounts, it works for us.”
Additionally, he highlighted that the UPI payment option is free, and hence is a cost-friendly as well as convenient payment method. Lately, many banks have stopped the purchase of bitcoin and other digital assets using their credit card and debit card.
Indian banks such as Citibank and HDFC Bank have banned the purchase of bitcoin using their credit cards. However, Vishwanath said this move has had no effect on the local market, as most people prefer more modern digital payment methods.
The bank’s decision has only affected crypto traders that intend to buy digital currencies on foreign trading platforms using a credit card. However, for now, it seems the use of UPI-enabled apps on local exchanges will shoot up in the coming months.
Are there any other payment options more convenient and cost-effective than these? Let us know your views on the same.
Images via Zebpay, Pixabay