Functional Requirements for UPI System Design
Below are the functional requirements for UPI system design:
- User Registration and Authentication- Users should be able to register and create a UPI account. Provide secure authentication mechanisms (e.g., PIN, biometric authentication).
- Bank Account Linking- Users should be able to link multiple bank accounts to their UPI profile. Facilitate the management of linked bank accounts (e.g., add, remove, and update account details).
- Payment Address Management- Users should be able to create and manage Virtual Payment Addresses (VPAs).
- Money Transfer- Support person-to-person (P2P) transfers. Support person-to-merchant (P2M) payments. Enable scheduled and recurring payments.
- Transaction History- Provide users with a detailed transaction history, including status and timestamps.
- Notifications- Send real-time notifications for all transactions (e.g., payment success, failure).
- Payment Requests- Allow users to request payments from other UPI users.
- QR Code Payments- Generate and scan QR codes for quick and easy payments.
- Bill Payments- Support utility bill payments through the UPI interface.
Designing UPI – System Design
Designing a Unified Payments Interface (UPI) system involves creating an architecture that enables real-time inter-bank transactions through a seamless and secure platform. Key components include user interfaces, a central UPI switch managed by the National Payments Corporation of India (NPCI), backend systems of participating banks, and third-party service providers.
- The system supports core functionalities such as user registration and authentication, payment initiation and authorization, inter-bank transaction processing, and real-time settlement.
- Security measures like encryption and multi-factor authentication ensure compliance and protect against fraud, making UPI a reliable and efficient payment solution.
- The UPI is a real-time payment system that facilitates inter-bank transactions by instantly transferring funds between two bank accounts on a mobile platform.
Important Topics for UPI system design
- Functional Requirements for UPI System Design
- Non-Functional Requirements for UPI System Design
- Capacity Estimation for UPI System Design
- High-Level Design(HLD) for UPI System Design
- Low-Level Diagram(LLD) for UPI System Design
- Microservices Used in UPI System Design
- Scalability for UPI System Design