Context:
The National Payments Corporation of India (NPCI) has announced that it will discontinue the peer-to-peer (P2P) collect request feature on UPI starting October 1, 2025. The decision comes amid rising cases of fraud and misuse linked to this feature.
What is Changing?
- Collect Request Feature:
- Allowed a UPI user to send a payment request to another user (e.g., to split bills or remind someone to repay money).
- The recipient could accept or decline the request.
- Problem: Fraudsters increasingly misused this feature by tricking unsuspecting users into approving bogus payment requests.
Peer-to-Peer (P2P) Collect
- P2P Collect is a feature in UPI (Unified Payments Interface) that allows a user to request money from another user, instead of sending it.
- Unlike a normal transfer (where the payer initiates), here the receiver initiates a “collect request” and the payer just needs to approve it.
Peer-to-Peer (P2P) in Payments
- Peer-to-Peer (P2P) payments are digital money transfers between two individuals without involving cash or physical instruments.
- Transactions happen using mobile apps, UPI IDs, QR codes, phone numbers, or bank accounts.
