New Delhi: Razorpay has integrated the BHIM Vega UPI plugin in collaboration with NPCI BHIM Services Ltd and Axis Bank, becoming the first payment gateway to adopt the new in-app UPI solution.
The BHIM Vega plugin, launched recently by NPCI BHIM Services Ltd (NBSL), aims to streamline Unified Payments Interface (UPI) transactions by eliminating the need to redirect users to third-party apps during the payment process. This integration is expected to impact how businesses offer digital payment options to customers, particularly by reducing transaction drop-offs and improving completion rates.
What Is BHIM Vega?
BHIM Vega is a next-generation UPI plugin developed by NBSL, an NPCI subsidiary, and is built on the existing BHIM infrastructure. Unlike traditional UPI flows where users are redirected to external apps like Google Pay or PhonePe to complete payments, BHIM Vega enables UPI transactions directly within the merchant’s mobile application.
This model is designed to ensure transaction continuity and user retention within the business app, which has been a key concern for e-commerce and service platforms. Razorpay’s implementation of this feature is through its ‘Turbo UPI’ framework, launched in partnership with Axis Bank.
Industry Implications
The integration of in-app UPI capabilities signals a shift in how digital transactions will be handled by businesses and fintech providers in India. By reducing reliance on external payment apps, companies can control the payment experience end-to-end, which is particularly relevant in improving customer experience and transaction speed.
According to industry observers, such integrations are likely to support the ongoing growth of UPI in India, which continues to be one of the most widely used real-time payment systems globally. The move could also encourage other payment gateways to explore similar partnerships with NBSL and banks.
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