You must be aware of the UPI full form which is Unified Payment Interface and it is a real-time payment system that is used to transfer money instantly through digital wallets. The National Payments Corporation of India (NPCI) has developed this payment system and the motive behind this system is to get rid of lengthy money transfer procedures. Earlier, you used to enter the account details of the person to whom you are transferring money but now a unique UPI ID is enough to transfer money. Transacting on UPI has made it convenient for many individuals to transfer money within seconds. Let’s explore the benefits of making UPI Payment and see how it can help you to make hassle-free transactions.
Key Points to Target About UPI System
Here are some of the key points of making payments through UPI and it can help you to save time.
- Now you can access various bank accounts through a single UPI mobile app.
- The authentication process is also safe and secure for making various transactions.
- You will not need any bank account detail to transfer money from one bank account to another.
- You can go cashless and make the payment at any outlet through the barcode or the UPI ID.
- UPI is enabled through Mobile Money Identifier (MMID) which gives it permission to access the account number, IFSC code, and phone number.
- You will have to provide an OTP (One-Time Password) or an MPIN to authenticate every payment you make to another UPI ID.
- UPI allows you to make payments at thousands of merchants using your smartphone.
- Sometimes the UPI Payment fails so you can raise a query about the failed transaction through the App and it will resolve your issue.
Benefits of UPI Apps
- UPI Payments go through the two-factor authentication process.
- You can use a single application for making all the transactions.
- It is a Safe and secure way of payment that makes it beneficial for the banks.
- The UPI ID of every individual is unique and it can be used to identify payments.
- The merchants can collect the funds from their customers digitally.
- UPI App maintains a record of all the transactions done through it.
- Anyone can go through all the transactions quickly using the UPI App.
- You can make a payment of the exact amount to the merchants and there is no need to keep change for doing the transactions.
- The payments to the vendors have also become easier after the introduction of UPI payment system.
- There is no need for a debit card or credit card to make the payment from UPI because you will just have to link your bank account.
- The availability of the application is 24×7 and you can use it anytime.
- There is no need to share any credentials with anyone because the UPI ID is enough to receive or make payments.
Transacting on UPI
You can check out the steps to transfer money through UPIs:-
- Download and Open the UPI app on your smartphone.
- Register yourself if you are a new user otherwise login through credentials.
- You will need the m-PIN or UPI Pin to log in to the UPI application.
- Then touch the Transfer/Send Money option.
- Provide the beneficiary’s VPA, Phone Number, or account information.
- Now enter the amount you are willing to pay.
- Provide the UPI Pin and then authenticate the UPI payment.
- Once the authentication is done, the receiver will receive the money in his bank account and the amount will be debited from your account.
- You can also use the UPI Pay later option for making the payments.
There are a lot of things to know about UPI before you start using it. It has made the payment system easier and more convenient. Now, with a few touches on the mobile screen, you can transfer money from one bank account to another.