UPI Plug-in Service Steps:

Introduction:

Integrating the UPI Plug-in service involves a series of steps to ensure a seamless payment experience for users within your Partner App. Below is a general outline of the steps you would need to follow to integrate the UPI Plug-in service:

1. Obtain Approval from NPCI:

   • Ensure that your business use case for UPI integration meets the approval criteria set by NPCI.

   • Obtain necessary approvals from NPCI for integrating the UPI Plug-in service.

2. Preparation and Prerequisites:

   • Familiarize yourself with the UPI Plug-in service documentation provided by NPCI.

   • Ensure your Partner App meets technical and security requirements for integration.

   • Access and integrate the necessary software development kits (SDKs) provided by the Sponsor PSP bank.

3. Partner App Integration:

   • Integrate the UPI Plug-in SDK provided by the Sponsor PSP bank into your Partner App.

   • Implement the necessary UI elements and user flows to seamlessly initiate UPI payments within your app.

4. User Authentication and Authorization:

   • Implement user authentication mechanisms in your Partner App to ensure secure access to UPI features.

   • Integrate the necessary authorization protocols to allow access to the user's UPI ID and remitter account details.

5. Transaction Initialization:

   • Implement the logic to initialize UPI transactions within your Partner App using the UPI Plug-in service.

   • Ensure that transaction details are accurately populated and prepared for user confirmation.

6. User Interaction and UPI PIN Entry:

   • Design and implement a user-friendly interface for users to enter their UPI PIN securely within your Partner App.

   • Utilize the UPI Plug-in SDK to securely capture and transmit the UPI PIN to the PSP server for verification.

7. Transaction Confirmation and Status:

   • Provide real-time feedback to users regarding the transaction status, including success, failure, or pending status.

   • Handle scenarios where transactions fail and guide users on appropriate actions to take.

8. Error Handling and Dispute Resolution:

   • Implement error-handling mechanisms to address any issues that may arise during the transaction process.

   • Allow users to raise dispute requests within your Partner App for UPI transactions, as required by NPCI guidelines.

9. Branding and Intent Call:

   • Adhere to UPI interoperability guidelines by providing a visible opportunity for users to complete transactions using Intent calls with appropriate branding.

   • Ensure that users can easily identify and select your Partner App for UPI transactions.

10. Testing and Certification:

    • Thoroughly test the integration of the UPI Plug-in service in a controlled environment.

    • Coordinate with the Sponsor PSP bank for integration testing and certification with NPCI.

11. Data Privacy and Compliance:

    • Implement data privacy measures to ensure that sensitive customer information is handled securely and only shared as necessary.

    • Ensure compliance with data localization requirements and other relevant regulations.

12. Deployment and Launch:

    • Once the integration is thoroughly tested and certified, deploy the updated version of your Partner App with UPI Plug-in functionality.

    • Promote the availability of UPI Plug-in service within your app to users.

Conclusion:

Just so you know, the specific steps and technical details may vary based on the guidelines provided by NPCI and the Sponsor PSP bank. Ensure that you closely follow the documentation and guidelines provided to ensure successful integration of the UPI Plug-in service into your Partner App.

UPI Plug-in service by NPCI Document - Here

Here are the key points outlined in the document:

1. Introduction of UPI Plug-in Service: The UPI Plug-in service allows a sponsor bank to extend its PSP (Payment Service Provider) bank SDK (Parent App) to integrate with a merchant's app (Partner App). This integration allows for an inline payment experience where users can enter their UPI PIN in the Partner App, while still promoting the full functionality of the Parent App.

2. Partner App Functionality: The Partner App needs to provide UPI merchant functionalities based on the partner's approved business use case, specifically for merchant payments.

3. Non-Exclusive PSP Bank Handle: The Partner App operates as a non-exclusive PSP bank handle, sharing the same profile (UPI ID and remitter account of the user) as the PSP app (Parent App). This allows the Partner App to leverage the existing user base of the Parent App and support new user registration using the UPI Plug-in solution.

4. Infrastructure and Data Communication: The UPI Plug-in service is managed within the bank-controlled infrastructure, whether on-premise or in the cloud. Payment transaction data communication is only permitted between the PSP SDK and PSP server directly.

5. Data Privacy and Sharing: The Partner App is not allowed access to sensitive customer data, and it can only access information required for UPI transaction dispute resolution. The Partner App cannot share UPI transaction data with any other entity without the prior consent of the Sponsor PSP Bank and NPCI.

6. Sponsor PSP Bank Responsibilities: The Sponsor PSP bank is responsible for the KYC and onboarding of Partner Apps. It must ensure due diligence in the onboarding process and compliance with data localization requirements.

7. Compliance with UPI Guidelines: The Partner App must adhere to the interoperability guidelines of UPI, ensuring that all UPI customers have a visible opportunity to conclude transactions using the Intent call with proper branding.

8. Liability: The Sponsor PSP bank bears full liability for all actions and activities of its Partner Apps.

Detailed overview of the UPI Plug-In system and Other Apps

A detailed overview of the UPI Plug-In system introduced by the National Payments Corporation of India (NPCI). This innovative solution allows merchants and consumers to transact directly without the need for third-party apps like Google Pay or PhonePe, potentially reshaping the digital payments landscape. 

Here's a summary of the key points:

What is UPI Plug-In?

The UPI Plug-In, introduced by NPCI, is a merchant software development kit (SDK) that enables online businesses to integrate a virtual payment address. This technology facilitates direct transactions between merchants and consumers, bypassing the necessity for third-party payment apps.

How UPI Plug-In Works:

1. Merchants integrate UPI Plug-In with their applications to accept payments.

2. Payment gateway firms (e.g., Paytm, Razorpay) partner with banks and NPCI to launch UPI Plug-In SDKs.

3. Merchants like Razorpay integrate the UPI Plug-In solution with their apps, enabling direct payments.

4. Customers can make payments within the merchant's app using UPI Plug-In, avoiding redirection to separate UPI apps.

5. The payment process involves selecting a UPI account, entering the MPIN, and confirming the transaction.

6. The UPI Plug-In model aims to reduce payment failures and expedite transactions.

Impact on Third-Party Apps:

Third-party UPI apps like PhonePe and Google Pay could potentially lose market share as merchants adopt the UPI Plug-In feature.

Rahul Chari, co-founder and CTO of PhonePe, expressed concerns about the additional burden on merchants and potential inconvenience for customers due to the UPI Plug-In model.

Safety and Privacy Aspects:

The UPI Plug-In restricts access to customer-sensitive data for dispute resolution purposes.

Merchant apps cannot share UPI transaction data without consent from the Sponsor PSP Bank and NPCI.

The sponsor PSP Bank is responsible for onboarding partner apps, ensuring compliance, and assuming liability for partner app activities.

The UPI Plug-In, introduced by the National Payments Corporation of India (NPCI), represents a significant evolution in the realm of digital payments. By enabling direct transactions between merchants and consumers without the need for intermediary third-party apps like Google Pay or PhonePe, this innovative solution has the potential to transform the way people conduct online transactions.

Streamlined Transactions: 

One of the primary benefits of the UPI Plug-In is its ability to streamline the payment process. Traditionally, when making a payment on an online platform, users are often redirected to a third-party UPI app to complete the transaction. This redirection can sometimes create friction, as users need to switch between apps and may encounter additional steps in the payment process. With the UPI Plug-In, this redirection is eliminated, allowing users to complete payments seamlessly within the merchant's app itself. This not only enhances the user experience but also contributes to faster and more efficient transactions.

Enhanced Merchant Control: 

Merchants also stand to gain from the adoption of the UPI Plug-In. By integrating this technology into their applications, merchants can exercise more control over the payment process. This can lead to a more cohesive and branded payment experience for customers. Moreover, merchants can potentially customize the payment flow to align with their business needs and branding, thereby enhancing their overall customer engagement and loyalty.

Reduced Payment Failures: 

Payment failures can be a significant concern in the digital payments landscape, often resulting from technical glitches, network issues, or user errors. The UPI Plug-In aims to mitigate these concerns by offering a more direct and integrated payment solution. By minimizing the number of steps involved in the payment process, the UPI Plug-In can potentially reduce the likelihood of payment failures and associated frustrations for both customers and merchants.

Challenges and Considerations: 

While the UPI Plug-In introduces several benefits, there are also challenges and considerations to be addressed. The potential impact on third-party UPI apps, such as PhonePe and Google Pay, is a topic of discussion. These apps have become widely popular for their user-friendly interfaces and features beyond payments, such as bill splitting and peer-to-peer transfers. The emergence of the UPI Plug-In could prompt these apps to innovate further and differentiate themselves to retain their user base.

Additionally, there are concerns about the potential burden on merchants. The integration and management of the UPI Plug-In within their apps could require additional resources and technical expertise. Merchant onboarding, compliance, and data privacy are critical aspects that need to be carefully managed to ensure the security and reliability of the UPI Plug-In ecosystem.

Conclusion: 

The UPI Plug-In represents a forward-thinking approach to digital payments, offering a more direct and seamless experience for both consumers and merchants. As its adoption continues to grow, it will be interesting to observe how the ecosystem evolves, how third-party apps respond to the changing landscape, and how merchants leverage this technology to create enhanced payment experiences for their customers. Amidst the evolution of the digital payments landscape, the UPI Plug-In stands out as a transformative solution with the potential to reshape the way transactions are conducted in the modern world.