India has brought innovation into the digital world. UPI has achieved the peak of success in bringing change to the payment system. India is bringing a revolution in Digital Transaction systems through UPI.

PhonePe, Paytm, BHIM app, Google pay, Uber, SBI Pay, iMobile, Axis Pay and Bank of Baroda (BOB) and some other apps has associated the UPI system to enable ease in the transaction.

Unified Payments Interface

UPI (Unified Payments Interface) has digitalized the payment system, and its main aim was to include maximum people in digitization, and to simplify, facilitate, and digitalize digital payments. A UPI ID marks its importance in providing the facility to merge multiple bank accounts on the platform, and also the facility of doing instant money transfers between two banks. It keeps the data confidential and works 24 x7 hours.

Who brought UPI?

It is a brought by the National Payments Corporation of India (NPCI), the Reserve Bank of India (RBI), and the Indian Banks Association (IBA). NPCI is associated with the Immediate Payments Service (IMPS), and UPI is the more advanced version of IMPS.

In March 2011, only six non-cash transactions were done by every individual, whereas 10 million retailers agreed to accept the card-based transaction. In order to fulfill the gap in this digital transaction, in 2012, RBI released a vision statement for the coming four years, which stated that a safe, efficient, accessible, inclusive interoperable and authorized payment system will be developed in India, which will be a part of Green Initiative.

It came up with the aim of reducing the use of paper in the Domestic Payment Market. It was officially launched for public use. After its launch, it marked an exponential growth in India. India is bringing a revolution in Digital Transaction systems through UPI.

What is UPI Transaction?

It is a platform of the payment system, which is associated with the feature of associating many banks with it, and transacting the funds from it securely.

It asks to register the bank account details, and bank-linked mobile number only once, and allows transactions through the mobile devices.

UPI ID is an identifier for a bank account, which is used for sending and receiving funds. It is associated with the UPI PIN, which is a 4-digit personal identification number that is chosen by the account holder, and has to be entered while transferring the money via UPI.

Ideal For All Business Cases

UPI is used by all kinds of business sectors and is considered an ideal payment platform for all businesses. It provides instant notification for the payments, and also marks its importance in allowing high-volume retail payments with high security and zero charges. Whether it is a small business, E-Commerce business, or large-scale business, it enables barrier-free payments.

Apps that provides UPI Feature:

PhonePe, Paytm, BHIM app, MobiKwik, Google Pay, Uber, Chillr, Paytm, Payments Bank, SBI Pay, iMobile, Axis Pay, and Bank of Baroda (BOB).

Uniqueness

It is associated with different features that make it unique. It provides a unique mobile app, which has access to different bank accounts, and enables the prompt transfer of money via mobile devices, without any barrier. It does not consistently ask for entering account details, PAN number, or IFSC Code for transferring money. It only asks for the four-digit generated pin and enables secured transactions. It saves people from the burden of going to the ATM.

Is UPI Secured?

It is associated with a high-secured payment transaction, which builds trust in the minds of the people about it. The IMPS network of NPCI handles approximately Rs. 8,000 crore. The payment system is secured with multi-layer protection, which transforms the payment system in India.

Success

These days people are getting attracted towards big platforms because of its wide network. It has been developed as an open and interoperable platform.

With the association of this feature, the one can send money to a different UPI user easily and securely. India has moved ahead of other countries in the field of financial technology with its launch. It has received appreciation from the International Settlement System.

As per the report released by RBI, UPI transactions has been increased by 13 times from 2018 to 2020. If it would be promoted internationally in the coming time, then it would challenge the Mastercard and Swift.

Features and Benefits

Small Business

Small shopkeepers and consumers have got the benefit of doing low transactions, which is cost-free. This engages more number of small business people with the platform.

Privacy

While transferring the amount or doing recharge, it does not ask to disclose the bank account number, PAN card details, or other details. It protects the privacy of the user and payee and also removes the probability of getting fraud.

Instant Money Transfer

Instant Money Transfer allows a person to send and receive payments digitally at any time and anywhere. It provides speed and convenience with the transfer system through the mobile. One can send or ask for money from relatives or friends in an emergency. It saves people from the burden of going to the bank and transferring money.

24*7 Payment Transfer

The system provides convenient service to the people with the 24*7 payment transfer and meets the need of the customers. This has helped the system in increasing its customer base to a wide range.

Multiple Modes of Payment

It provides an option for merging different banks on one platform for payment transfer. If one payment mode has a technical issue and the payment transaction fails, then the people can opt for another mode for the transaction. People can avail the benefit of having multiple modes of transaction.

Easily Payment of Bills

UPI has saved people from the tedious work of standing in the queue for paying bills. One can securely and instantly pay the bills, and also recharge the mobile. It also provides an option for paying water bills, electricity bills, gas booking, gas bills, DTH recharge, rental bills, and metro card recharge as well.

Offline Transaction (*99#)

One can do offline transactions as well with UPI. One just needs to dial *99# from the same number that is registered and linked with the bank.
It asks to choose the desired language and the bank name. After entering the last six digits of the debit card, it asks to enter the expiry date of the debit card. After this setup, one can easily do offline payments.

One-time Mandate

UPI 2.0 mandates are associated with the One Time Mandate feature, which allows a person to pre-authorize a transaction and pay it later. This is secure to use, and avoids the failures of transactions. These are beneficial because mandates are generated instantly and payments get deducted automatically on the authorized date. It acts as a very beneficial feature for merchants, businessmen, and for loan payers as well, because if the loan payer fails to send the money, then with the help of this mandate, the amount will get debited automatically.

Online Shopping

It is available on Amazon, MakeMy Trip, Zomato, Oyo, Myntra, Flipkart and many more, and has made the online shopping free from the burden of carrying money. One can pay easily by scanning the QR code, and entering the PIN.

Send and Request Money

The platform allows a person to request and send money from the relatives or friends. It proceeds and sends notification of the request to the payer after the verification. Here the payer has the option to either accept or decline the payment request.

Overdraft Accounts

An overdraft is a facility provided by the bank through which an account holder can borrow up to a certain sum once the account balance reaches zero. It provides benefit of getting online access to the OD account.

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