The UPI can be thought of like an email ID for your money. It will be a single identifier that your bank uses to transfer money and make payments using the Immediate Payments Service (IMPS) - which lets you transfer money immediately and works 24x7. What this could do is make online payments much easier without requiring a digital wallet or credit or debit card.
By simplifying net-banking, the UPI could simplify online transactions - right now, you either have to enter your credit/ debit card number, name, expiry date and verification codes, or sign in with your net-banking account and go through a similarly tedious process, or use a digital wallet such as MobiKwik or Paytm to make a quick payment.
Mobile wallets have been growing in popularity in India as they make it easy to carry out transactions on different platforms. Today, you can use money saved in a digital wallet to pay for your taxi ride, book your lunch, buy movie tickets, or even train tickets.