It’s 2023! Can you imagine your life without UPI payment? No, right? We all are so used to paying from small amounts to big amounts via UPI these days. It is simple, convenient and super-friendly to use. Just scan a QR code, and you are more than good to go.
Long gone are the days when people used to carry their wallets everywhere with them. Now, the wallet has surely been replaced by smartphones as it can do literally anything for you.
UPI or Unified Payments Interface is a real-time payment system that was developed in recent years by the National Payments Corporation of India (NPCI), which is basically an initiative of the Reserve Bank of India (RBI) as well as the Indian Banks’ Association (IBA).
This technology, which has drastically changed how people pay and receive money, enables users to link multiple bank accounts to a single mobile app and tends to perform various types of financial transactions. These include transferring funds from one account to another, making payments, and even receiving funds.
When it comes to which application to use, that is totally on you. In my
personal experience, I have been using the Bajaj Finserv application for quite a long time now it is totally reliable.
As the term suggests, it refers to a financial transaction made using the UPI platform. There is no doubt in the fact that this technology offers a convenient, secure, and instant way to transfer funds and conduct various financial activities.
Here is a step-by-step guide on how this payment type works:
Potential users need a bank account with a financial institution supporting UPI and an internet-enabled smartphone.
The user opens the application and tends to enter the recipient’s VPA, mobile number or bank account details. The most trending of all is to scan a QR code.
After entering the amount, the user needs to authenticate the payment on the UPI payment app using a UPI PIN.
Once the PIN is entered and verified, the payment request is sent to the user’s bank, following which they process it.
If the authentication and verification are successful, the funds are immediately debited from the sender’s account and are credited to the recipient’s account.
Both the sender and receiver here receive instant notifications confirming the transaction.
A UPI payment app operates round the clock, including weekends as well as holidays. This key feature makes it quite a powerful and swift payment system, as it ensures that users can easily perform transactions at their convenience without being constrained by banking hours.
UPI transactions are obviously secured through multi-factor authentication, including a UPI PIN known only to the user. This ultimately provides a robust security layer to prevent unauthorized account functioning.
UPI facilitates real-time processing of transactions, ensuring that the amount is transferred instantly between two bank accounts. This thing is particularly beneficial for time-sensitive transactions.
This technology has played quite an important role in driving India’s digital payment revolution. Especially after the Covid-19 outbreak, digital transactions have witnessed a major boom. Further, it has encouraged individuals and businesses to shift from traditional cash-based transactions to digital payments.
If you still have doubts on why UPI is the most powerful payment system, consider reading this article again. Moreover, features like UPI pay later which helps users during tough times and variety of uses of this technology has made it quite a reliable payment system.