[vivegi]

UPI's design is very good. It does all of the mentioned points along with ease of use.

1. You can discover the counterparty using their registered mobile phone number tied with their bank account. In B2B and P2P scenarios, the business or the individual already has the counterparty's phone number in most cases. So, this handles like 90% of the cases of simple discoverability. For use cases like sending money to friends/family, this is perfect.

2. The mapping of the virtual address to the bank account is maintained and managed by the banks (as part of the bank's UPI interface mandated by the standard) and shared with the NPCI's UPI backend using tokenization.

3. A user can create multiple virtual private addresses [VPAs] (eg: mybillpay@bigbank, subscriptions@bigbank etc.,). The user can then track their spends/receipts by VPA.

The ease of use is an order of magnitude higher compared to entering bank account information. Settlements are bank-to-bank and instantaneous (~2-3 secs) powered by the NPCI backbone.

India used to have a high use of Cash-on-delivery (COD) for e-commerce. This gave a good electronic equivalent for COD that also helped e-com operators.