Say Hello to e-RUPI: The Latest Fintech Revolution

Say goodbye to cash, hello to e-RUPI!

Introduction to e-RUPI

e-RUPI is a digital payment system introduced by the National Payments Corporation of India (NPCI) that allows users to make secure and contactless payments for specific purposes, such as healthcare services or government welfare schemes. It’s easy to use, accessible to everyone, and doesn’t require a bank account or digital wallet.

When a user receives an e-RUPI voucher on their mobile phone, they can redeem it at a participating merchant without any additional transaction steps. The voucher is encrypted and verified before payment is made, ensuring security and preventing fraud.

e-RUPI is designed to simplify digital payments in India and promote financial inclusion, making it a promising solution for the future of digital payments.

Understanding the Technology Stack

let’s use Sanjeev and Rajeev as examples to explain the technology stack behind e-RUPI

Sanjeev wants to pay for Rajeev’s medical expenses using e-RUPI. Here’s how the technology stack behind e-RUPI comes into play:

1. Sanjeev opens the e-RUPI app on his smartphone and generates a QR code containing the payment details, such as the amount and the purpose of the transaction. The QR code is encrypted and contains a unique token that represents the payment.
2. Rajeev, who doesn’t have a smartphone or the e-RUPI app, dials a USSD code provided by the service provider to access the e-RUPI system. This USSD code is a short, easy-to-remember sequence of numbers that allows Rajeev to interact with the e-RUPI system through a menu-based system on his phone.
3. Rajeev follows the menu prompts and enters the necessary information, such as the payment amount and purpose, to complete the transaction.
4. The USSD system processes the transaction and sends a confirmation message to Rajeev’s phone. The system also generates a unique transaction ID that is recorded in the e-RUPI system for future reference.
5. The payment is processed securely using tokenization, which ensures that Sanjeev’s bank account details are not revealed to Rajeev or anyone else. Instead, a unique token representing the payment is used to authorize the transaction.
6. If Rajeev is unable to use the USSD system, Sanjeev can still make the payment by generating a voucher code from the e-RUPI app. The voucher code is sent to Rajeev via SMS or other messaging platforms, and can be redeemed at the service provider’s outlet.

In summary, the USSD technology stack acts as an intermediary between the e-RUPI app and users who don’t have access to a smartphone or the app. It allows them to interact with the e-RUPI system through a simple, menu-based interface on their phone, ensuring that payments can be made by anyone, anywhere, regardless of the device they’re using.

e-rupi workflow diagram

The Benefits of e-RUPI for Businesses

1. Lower transaction costs: Unlike UPI, e-RUPI doesn’t have any transaction fees, saving businesses money on each transaction.
2. Increased efficiency: e-RUPI generates a unique voucher code that can only be redeemed by the intended recipient, reducing the risk of fraud and avoiding the need to share bank account details with customers.
3. Improved customer experience: e-RUPI doesn’t require customers to have a bank account or UPI ID, making payments more accessible for everyone. Customers simply receive a voucher code on their mobile phone and redeem it at the service provider.

How can the businesses use it

With e-RUPI, businesses can generate redeem vouchers through the e-RUPI application, which has a similar interface to UPI. This means that businesses can easily integrate e-RUPI into their existing payment systems and processes.

Once a voucher is generated, the payment can be made from a digital wallet to the merchant’s digital wallet. The payment can be later redeemed to the merchant’s bank account. This process helps businesses to streamline their payment processes and reduce the risk of fraud.

e-RUPI is a unique digital payment solution that generates a unique voucher code that can only be redeemed by the intended recipient. This means that businesses can avoid sharing their bank account details with customers, thereby reducing the risk of fraud. The payment process is also simple and accessible for customers, as they do not need to have a bank account or a UPI ID to make payments. They can simply receive a voucher code on their mobile phone and redeem it at the service provider.

Overall, e-RUPI offers several benefits for businesses, including lower transaction costs, increased efficiency, and improved customer experience. By integrating e-RUPI into their payment processes, businesses can streamline their operations, reduce the risk of fraud, and provide a more convenient and accessible payment option for their customers.