Gone are the times when you arranged for change to pay shopkeepers. Your smartphone is your companion and wallet. It allows you to roam cashless and fulfils all your financial needs. Whether you buy food or pay bills, online payment is the trend everyone follows.
The Unified Payment Interface is a mobile payment method allowing you to transfer funds between bank accounts without additional charges. Ever since its facilitation, the UPI payment app has made financial transactions easier for account holders. It is an advanced version of IMPS and NEFT payment methods.
How to use it?
You need to set a UPI payment ID that works as a virtual payment address for the account holder and a UPI PIN for confirming the transaction. The National Payments Corporation of India took the support of the Reserve Bank of India and the Indian Banks Association to build a payment infrastructure that allows banks to connect and facilitate fund transfers among individuals.
Why is it booming?
To transfer money from this app, you do not require the receiver’s details. You only need their UPI ID to transfer funds directly into the Bank Account. Unlike other payment methods, these transfers are hassle-free and quick. You can also request individuals for money, an option unavailable with different payment modes. Almost all banking apps support these transactions.
Functions
The traditional online banking procedure requires you to enter the receiver’s account number, IFSC code, account type, bank name, etc., to add them as a new payee. The process takes nearly 12 hours, after which you can perform the transaction. Though it is convenient, the process takes time and limits usage.
But UPI allows you to escape from this complex process. You can quickly transfer funds to others using the UPI ID as allotted by the bank to account holders. The registration process is simple and requires minimal details. It links directly to your Saving Account and does not require an additional wallet balance.
Registration
You require a smartphone and the Bank Account of the UPI member bank to enjoy the cashless payment benefits. The bank should include your mobile number in their records. Download any supporting app and create a Virtual ID for payments. You receive an OTP from the bank to confirm the details. Create your Virtual Payment Address after successful verification. Bill payment is also possible from this app.
Is it safe?
It is a safe payment feature that verifies your mobile number during the initial registration. In the event of phone theft, block your mobile number to prevent financial transactions. You enter a four-digit passcode for authenticating every transaction, thus increasing account security. You can also check merchant authenticity through the QR code feature.