The SWOT analysis of NPCI’s UPI is as follows:

10.1. Strengths:
The strengths of UPI platform are as follows:
(1) Caters to Bottom of the Pyramid: UPI allows even the petty business person to start accepting
digital payments without the need for a POS machine in India, where payment infrastructure is poor
for accepting digital payments. UPI has eliminated the need for transacting parties to know the
complicated payment credentials, and hence, making payments convenient and transparent for all
parties involved. UPI operates on a safe, stable, and robust platform that includes numerous security
features that make it more secure than any other payment system currently in use. Biometric
authentication in UPI will not only make payments more reliable but will also mark a significant
step forward in the integration of next-generation technology with current payment systems. UPI
has the potential to be a major facilitator of financial inclusion in India, enabling a large portion of
the population to engage in the digital economy [17].
(2) Corruption Deterrent: In developing countries, digital financial transactions contribute to a
lessening of corruption and reduction in the contagion of the parallel economy [18].
(3) Simplified Payment Mechanism: It enables to use of the mobile phone as the primary payment
mechanism for all transactions, including P2P, P2B, and B2P.
(4) Pay & Collect: Users can use their mobile phones to “pay” (push) and “collect” (pull) money
from
others.
(5) Multiple payment options: Multiple identifiers, such as customised Virtual Payment Address
(VPA), 12-digit AADHAR Number allotted by Unique Identification Authority of India (UIDAI)
or Bank Account Number, and Indian Financial System Code (IFSC) can be used to make
payments.
(6) Secure sensitive information: Users of UPI can make payments through a Virtual Payment
Address without revealing account credentials.
(7) Notified of Future Payment: Ability to send collect requests to someone with a "pay by"
deadline
(i.e., P2P or B2B). It sends a "snooze" notification to the payer, allowing them to pay before the
expiration date. It does not hold money in the account until the consumer has paid it.
(8) Multiple Virtual Payment Address (VPA) across PSPs: In UPI 2.0, users can add numerous
bank accounts, including overdraft accounts, and create an unlimited number of Virtual Payment
Addresses via mobile apps offered by PSPs (Payment Service Providers).
(9) Open usage: Ability to use a completely interoperable system across all payment system players
without relying on closed networks and silos.
(10) Bill Payment: Payment of utility bills on a single platform through Bharath Bill Pay service
(BBPS) available in UPI.
10.2. Weaknesses:
The NPCI’s UPI platform has the following weaknesses:
(1) Delayed Transaction: Payment settlement may be delayed due to technical glitzes, leaving a
transaction to be interrupted. it can take up to 48 or more then that for the
money to get back to your bank A/C.

(2) Irritation on Double verification: Two-factor authentication like mobile and PIN verification
may
irritate the users.
(3) Transaction limit: The UPI money transfer limit is currently, the UPI transaction limit is
INR 1 LAKH . That means the maximum amount you well be able to transfer in a single UPI
transaction is INR 1LAKH.
(4) Requirement of cooling period: Payments done through means other than VPA, such as Account
Number and IFSC, are subject to the same cooling period as NEFT/RTGS transactions.
(5) Cybercrimes: The greatest downside of using UPI is that the banks are not assisting customers
with security issues. The majority of fraudsters nowadays ask for money to be transferred via UPI.
Customers should be careful enough while performing transactions over UPI [20].
1) UPI is a deal for smaller fund transfer, when an amount is high then other modes of
online transfer are preferable.
2) Another issue with UPI is that it is difficult to persuade customer to download the
bank application to their smartphone for a single payment interface because they are
concerned about online fraud.
3) Do not tell your personal information such as the data of birth, Thew UPI pin, and
other information to any other personal, so that your account will be safe.
4) If you want to transfer payment in the UPI then you can transfer up to Rs 10000 as
much as possible. You should send it one at a time if you need to send it more than
once.
5) You must know that you have to transfer money from the Unified Payment Interface
PIN is also know as the UPI PIN , and it is a very small digit, like 4 to 6 digit while
having a small digit it is not safe, so make your payment carefully and its information
does not let anyone else know.
6) It does not work on the slow of the interneSimple, secure way to send money
,recharge mobile, pay bills, buy play store recharge code. Pay directly from your bank
account with security of google PIN and UPI PIN.Money made simple, free money
transfers.

10.3. Opportunities:
The opportunities available for UPI are:
International Journal of Case Studies in Business, IT, and Education
(IJCSBE), ISSN: 2581-6942, Vol. 5, No. 1, June 2021
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Mahesh A., et al., (2021); www.srinivaspublication.com PAGE 263
(1) Strong Banking Network: A strong Banking network, and the launch of Digital India especially
after demonetization, propelled the country toward a cashless economy.
(2) Growth in Retail Digital Payment: During FY 2020-21, the retail payment segment has seen
rapid
growth in the use of digital payment services, with transaction volume doubling from 12.5 billion
to 22.3 billion and value double from Rs 21.3 trillion to Rs. 41 trillion.
(3) Internet Penetration: A large portion of the country's population lives in semi-urban and rural
areas. The prospective consumer base in these geographical areas will rise as the use of the internet
and mobile phones grow.
(4) Widening the scope of services: Initially, UPI was used for fund transfers between bank
accounts.
Presently it is providing a wide range of digital payment services such as bill payments,
investments, insurance, donations, handling overdraft accounts, one-time payment mandate, etc.
(5) PMJDY: Prime Ministers Jhan Dhan Yojana (PMJDY) programme as a financial inclusion
strategy related to opening bank account among poorer households particularly those engaged in
casual labour activities and illiterate [21]. This enlarged the base of account holders.
(6) Cash-lite economy: RBI’s Vision 2021 aims at building a strong digital payment ecosystem by
shifting to a cash-lite economy [22]. The government wants to reduce the use of real currency by
implementing easy digital payment channels.
(7) Zero Merchant Discount Rate (MDR): To encourage the use of digital payments, the
government
has exempted UPI and RuPay-based payments from the Merchant Discount Rate. This has increased
the use of UPI and RuPay in making payments on e-payment gateways.
10.4. Threats:
The following are the obstacles that UPI must overcome:
(1) Awareness: UPI usage awareness creation among the rural and illiterate population of the country
is most challenging.
(2) Cash is the King: Even though many e-commerce sites have adopted digital payment methods,
consumers still prefer to pay with cash. This trend is linked to concerns about cybersecurity in
digital transactions [23].
(3) Emergence of FinTech players: Strengthening of the traditional Banking system to compete with
tech generation companies i.e., FinTech Players.
(4) Grievance redressal: Pathetic Grievance redressal system for transactions performed over UPI
platform.
(5) Tax on UPI service: Levy of Tax/GST on UPI payment service in future days may demotivate
usage of UPI platform. The regulators need to be cautious in this regard.
(6) Restoration of Merchant Discount Rate: Users may shift to cash payments in retail payments
after the government reinstates the exempted MDR fee on UPI payments.

 Achievements:

o Digital transactions through UPI recorded

phenomenal growth during the pandemic year 2020-
21 and several countries have evinced interest to
learn from Indian experience so that they could
replicate the model.
o The value of transactions made using the UPI crossed
USD100 billion in a month for the first time in
October, 2021 according to data from the NPCI,
further cementing its position as India’s most popular
digital payments system.

 India’s digital payments industry is likely

to grow from Rs. 2,153 trillion at 27%
Compounded Annual Growth Rate
(CAGR) to Rs. 7,092 trillion by 2025.
 The growth is likely to come on the back of
strong use cases of merchant payments,
government policies including Jan Dhan
Yojana, personal data protection bill along
with the growth of MSMEs, growth of
millennials and high smartphone penetration.