Thread by @Shrikantha5

UPI is going to be the biggest disruptor in the finance. Let me explain.

The simplicity of UPI is it's strength. It is closest to cash. You can see money in your wallet. And you use it as though you are exchanging money.
Credit cards have a dissonant experience. UPI wins.

UPI uses the technology inflection to reduce the cost, traditional cards incur many costs due to interchanges and risk of promising credit with insufficient information.

UPI is more peer to peer and hence buyer and seller know each other and use the guarantee inherent in cryptography transaction.

The result is that UPI has extremely cheap overhead and ver strong security.

The transaction cost is an unbelievable 6/100 of a percent!
Compare that 3 percent charged by Visa or MasterCards!

The volume of transaction is continuously growing.

I am told last month UPI had a transaction value of 12 Billion USD!

If so, it is massive. Not sure. Please verify the figure.

And this completely upends the financial system as we know. Suddenly the distinction between cash and credit card disappears and government can deliver benefit directly without using intermediary systems that can be controlled from outside.

So, UPI is cheaper by order of magnitude, has scale and has platform like features for prosumers and government and business. Truly multiple transformation points!

A classic case of disruptive innovation.
#UPI #AtmaNirbharBharat