India allows digital wallet payments through any UPI app for greater flexibility

The Reserve Bank of India has announced that users can now make payments from digital wallets using any UPI-enabled app, provided the wallet has completed full KYC verification. This change allows for greater flexibility in payment options. Previously, users were limited to a single app for transactions. Now, wallets like Paytm and PhonePe can be used across various UPI apps, such as Google Pay, without switching apps. This aims to streamline the payment process. To enable this, wallet issuers must link their full-KYC wallets to UPI handles. Transactions will be authenticated using existing wallet credentials, making them pre-approved before reaching the UPI system.