Introduction:
The National Payments Corporation of India (NPCI) created the Unified Payments Interface (UPI), a ground-breaking digital payment system that has completely changed how we make payments. With features like quick payments, peer-to-peer transactions, and cashless payments, it has grown in popularity as a means of payment in India.
What is UPI?
Using a mobile device and the UPI payment system, consumers can instantaneously transfer money between bank accounts. Cash and other conventional payment methods, such checks or credit cards, are no longer necessary. Users may transfer and receive money swiftly, securely, and conveniently with UPI around-the-clock, every day of the year.
NPCI, a non-profit organisation founded to build a strong payment and settlement infrastructure in India, invented UPI. RuPay, BHIM, and UPI are just a few of the payment systems that NPCI has succeeded in developing and which have changed the Indian payment environment.
Features of UPI
Numerous consumers pick UPI as their preferred payment option due to a number of its benefits. Here are some of its main characteristics:
Instant payments: Customers can send and receive money instantly between their bank accounts.
Peer-to-peer transfers: Users can send money to anyone who has a UPI ID or a bank account.
Digital payments: It is a digital payment system that does not require cash or checks for transactions.
Mobile payments: It is accessible via a mobile device, making it simple and handy to utilise.
Payment gateway: It facilitates smooth transactions between banks by serving as a payment gateway between them.
E-wallets: Users can easily make payments straight from their wallets by connecting their e-wallets to their UPI IDs.
It allows QR code payments, enabling customers to utilise their mobile devices to scan and pay for goods and services.
Real-time payments: It is the best option for companies that need to make payments right away.
Benefits
UPI is a popular payment option for many because it provides customers with a number of advantages. Here are a few of the main advantages:
Convenience: UPI makes it unnecessary to use cash or other conventional payment methods.
Security: To guarantee the security of transactions, it uses two-factor authentication.
Minimal transaction costs: UPI has minimal transaction costs, which makes it more accessible to users.
It is accessible around-the-clock, enabling users to conduct transactions at any time and from any location.
Fast transactions: Because UPI supports fast fund transfers, it is perfect for companies that need to make payments right away.
Interoperability: UPI is interoperable between different banks, making it easy to transfer money between different banks.
Steps To Create a UPI Account
You require two things in order to take advantage of UPI’s cashless payment and instant money transfer features: a smartphone, and a bank account with a UPI-member bank.
Your bank account information must include your mobile phone number. As of the now, the majority of Indian banks are members. 21 banks accepted UPI in 2016. Now, there will be 216 banks by 2021.
Installing any UPI-supporting app on your smartphone is the next step. PhonePe, Paytm, Google Pay, BHIM, MobiKwik, Uber, SBI Pay, and BOB UPI are a few well-known UPI app examples.
To send or receive any UPI payment, you must use that specific ID. In order to verify that it is actually your bank account, your bank will then issue a one-time password, also known as an OTP, to your mobile number.
You can create your Virtual Payment Address (VPA) once the verification is complete.
Virtual Payment Address (or VPA)
Your personal Virtual Payment Network (VPN), such as xyz@merabank, resembles an email address.
The VPA spares you from having to fill in lengthy bank account information for both the sender and the recipient, who are both participating in the payment. It safeguards your bank details as well. When compared to digital wallets, credit cards, or traditional bank transfers, the VPA is the reason UPI is such a user-friendly platform for any payment.
Quick Response (QR) Codes:
Every transaction has a specific QR code, which makes payments simple. Many retailers do this successfully, including brick and mortar stores and internet (ecommerce) businesses. Static and dynamic QR codes are both available.
The QR codes that are pasted on a store counter, a television commercial, or at an event are known as static QR codes. You can pay the merchant immediately through their bank by scanning the cards.
Data is already embedded in static QR codes. It is exclusive to a merchant and is connected to their bank account. After scanning the code, a customer merely needs to enter the amount that needs to be paid.
This is perfect for businesses like convenience stores, eateries, and pharmacies where the amount may change from one transaction to the next.
Every time the merchant has to make a payment, a dynamic code is created. Along with the merchant’s name and bank information, this code also includes the amount to be paid. This is becoming more and more common in situations like grocery delivery to the home, internet purchasing, or food delivery.
Future of UPI
The future of UPI is bright, with several new developments and innovations expected in the coming years. NPCI is constantly working on new features and enhancements to improve the UPI system.
Additional links:
https://fatakpay.com/blog/what-is-a-personal-loan/
https://www.linkedin.com/pulse/what-nbfc-fatakpay/?trackingId=d3CajrWiWYyy0QrzgytzZQ%3D%3D
About FatakPay:
FatakPay provides virtual small credit facilities for all. It’s available on your phone and caters to your everyday needs in both online and offline formats. Payments are done seamlessly through UPI/QR codes. The solution provides an almost zero cost, free, quick, transparent and secure way to transact in a multilingual format with a Scan Now, Pay Later facility and easy repayment options.
Link to FatakPay App: https://play.google.com/store/apps/details?id=com.fatakpay
Link to the Website: https://fatakpay.com/
