In 2016, the Unified Payments Interface (UPI) system launched in India. Its goal was ambitious: a level playing field for small businesses and impoverished communities through re-imagined banking. In the midst of a global pandemic that has forced a socially distant lifestyle, UPI has never been more important nor more successful.
UPI’s Humble Beginnings
UPI’s primary purpose was to become an online platform that would eliminate bureaucratic and socioeconomic barriers to financial transactions. The goal was to allow anybody, from small Kickstarter businesses to multinational banks, to have the same access to banking capabilities.
UPI creates a standard set of rules for everybody on the platform—all Indian banks have access. Thus, smaller banks have equal opportunities to reach people as big ones. This goal is feasible due to UPI’s innovative techniques. With UPI, the party collecting money from an individual is decoupled from that individual’s bank account. This allows third-party apps such as Google Pay, PhonePe and Amazon Pay to collect and administer transactions without excess burden to the customer.
UPI makes things even more consumer-friendly by eliminating the need to enter long bank account and routing numbers for transfers. A virtual payment address, a simple username akin to an email address, replaces detailed information.
Finally, it is important to note that UPI serves a myriad of functions in the financial world. Simple peer-to-peer monetary transactions are carried out seamlessly. Advanced maneuvers are also handled with ease, including merging banking features from different banks, micro pensions and digital insurance.
UPI’s Growth
Since its launch, UPI has seen tremendous growth in both users and the number of transactions. Its user base is strong—recent numbers indicate over 100 million users. Its goal is to reach 500 million users by 2022. While this seems ambitious, early critics of the program did not expect UPI to gain the traction it has already.
The novel coronavirus impacted UPI both positively and negatively. During the worst of the lockdown, UPI’s transaction count decreased. People staying at home lowered demand for the platform’s services. However, since May 2020, UPI has boomed in both the number of transactions and the amount of money transferred. The number of transactions grew by 12% in July 2020, with 1.49 billion in the month of July 2020. UPI saw 822 million transactions in July 2019, indicating exponential growth during the last year. Similarly, the amount of money transferred in July 2020 was up to 2.9 trillion Indian Rupees, while July 2019 saw only 1.46 trillion Rupees.
As of July 2020, UPI reports services at 164 banks across India. With service 24 hours a day, seven days a week, UPI is lengthening its reach and its impact on the financial marketplace of India.
Looking to the Future
Looking forward, COVID-19 has provided a new opportunity for UPI and digital banking in general. India wants to decrease the amount of physical currency in circulation, and the pandemic has shown many people the virtues of online banking. For example, young adults wary of infecting their older parents have helped an older generation get on UPI and utilize everything it has to offer.
UPI’s recent boom focuses back to the platform’s original goal: creating an even playing field for all people, regardless of background or socioeconomic status. In 10 or 20 years, it would not be surprising to see all banking conducted virtually. Therefore, it is crucial to create a solid infrastructure that eliminates a system of preferential treatment based on wealth. UPI is helping to fight that fight.
– Evan Kuo
Photo: Flickr
The post UPI in India: Changing Banking for Millions appeared first on The Borgen Project.
Original Source: borgenproject.org
Austria is known for having one of the most generous and greatest healthcare systems across the world. Healthcare needs are readily accessible to Austrian citizens at little to no cost. The vast majority of the Austrian population has access to healthcare, as long as an individual is not willingly choosing to be unemployed.
Healthcare in Austria
Two-tiered system: In the first tier of Austria’s two-tiered healthcare system, healthcare covers 99% of the population, of which 75% is typically funded through public taxes. However, citizens can also pay to have supplementary healthcare, which allows individuals to see private practitioners. As of 2010, it is estimated that 130,000 individuals chose to pay for private healthcare.
Life-long private providers: For those who choose to pay for private or supplementary healthcare, insurance companies are not allowed to have restrictions within contracts, nor are they allowed to terminate an individual’s healthcare without permission. The private healthcare services can only be terminated by the individual, allowing the user to have access to life-long healthcare services.
High accessibility to hospitals and pharmaceuticals: Despite the decline in hospital bed availability around the world, Austria has 271 hospitals containing more than 64, 000 beds and around 45,000 doctors, classing the country as having one of the highest bed/patient ratios in Europe. Along with the availability of hospitals and other health centers, the cost of pharmaceutical drugs in Austria is low. In 2012, Austria’s pharmaceutical costs were an estimated 18.6% lower than the rest of Europe.
Public healthcare covers four areas: Within the Austrian healthcare system, there are four specific areas in which those who choose to have public healthcare, rather than private healthcare, can be covered: illness, maternity, precautionary and therapeutic aid. Each of these categories requires certain criteria for the individual to be categorized into one of the four areas.
Tourists have access to healthcare: For those visiting Austria with a European Health Insurance Card, access to public healthcare is enabled. While this does not cover any private healthcare, it does cover basic doctor’s visits, dental services and even emergency hospital visits. This allows tourists or students who may need emergency medical assistance to access healthcare at a reduced fee.
Through this dynamic healthcare plan, Austria is able to provide healthcare and benefits for its citizens. Whether it be a simple checkup or something more extensive, Austria’s public healthcare system alleviates healthcare burdens for its people. Even for those who pay for a private healthcare plan, the cost of medical expenses is far less than many places around the world, as it is estimated to only cost $243 a month. Whether it be private or public healthcare, Austria’s two-tiered system has found itself among the highest-ranking healthcare systems in the world.
– Olivia Eaker
Photo: Flickr
The post Five Facts About Healthcare in Austria appeared first on The Borgen Project.
Original Source: borgenproject.org