Unified Payments Interface (UPI) is perhaps the biggest contributor to India’s digital payment transformation. It is by far the most popular real-time payment platform in the country. Launched by the National Payments Corporation of India, UPI is growing rapidly with an aim to make India a cashless economy and drive digital payment inclusion. Keep reading to know how UPI is driving India’s digital transformation!
What Exactly is UPI (Unified Payments Interface)?
Unified Payments Interface or UPI is a mobile based payment platform that enables users to make and accept payments instantly using the bank accounts. It allows users to pay directly from their bank account to any person, merchant or platform without having to fill up credit or debit card details, banking information and anything else.
Users can easily download the desired UPI application on their phone from their respective application store and register using their bank account and mobile number. UPIs offer support for both peer-to-merchant and peer-to-peer transactions, and also non-financial transactions such as balance inquiry, transaction history, etc.
How Does UPIs Work?
Any person with a smartphone and a bank account can use a UPI. All they need to do is download any UPI application, preferably the one partnered with their bank and register on it using their mobile number and bank account number. And that’s it, afterward, they can start making p2p and p2m transactions as per their needs.
After downloading the UPI application, you have to set a password or the MPIN, link your bank account and create your VPA link. This process hardly takes 10 minutes and anyone can set up their UPI easily.
The biggest advantage of using UPIs is that the customers don’t have to provide their private financial information like account number, credit card details, IFSC codes on the non-trusted platforms. Thus, it offers an enhanced level of security and added convenience to the users.
What Is Helping UPI Gain Popularity Among Users?
In simple words, the simplicity and interoperability of UPIs are the two major factors that are helping this payment infrastructure gain traction in the real-time market.
The main advantage of using the UPI payment gateway is, they make the bank account of a customer portable, meaning users can link any bank account to any bank’s UPI or even the third-party UPI apps. Also, users can link their multiple bank accounts in a single UPI and use the one they need. Switching between multiple bank accounts using a UPI app is very easy and quick. This functionality makes the platform convenient for the end customers.
Even the less educated users can use it without facing any difficulties, to support this, UPIs offer Hindi language support as well.
UPI payment gateway makes transaction processing smooth and highly secure by using techniques like VPA(Virtual Payment Address). A VPA is a unique identifier that enables users to connect with anyone they want to make payment without revealing their credit or debit card details like card number, CVV, OTP and so on. All in all, it eliminates the fraud risk to a great extent. Click here to know more about UPI payment gateway.
Key Benefits of Unified Payments Interface (UPI) For Indian Economy
- UPI is a great bounce for payment systems in the growing economy of India. It enables users to go completely cash-free and make payments without using plastic or paper money.
- UPI payment gateway aims at making Indian payment systems interoperable across a variety of payment infrastructures by removing the risk factor and enhancing security by means of 2-factor authentication. It results in accelerating low cost as well as high volume payments, creating a new and robust transaction environment for the merchants and customers.
- UPI payment gateway can also benefit the banks because the service can be provided with a simple smartphone. Users don’t need to run for banks or ATMs to use the services of banks. UPI has successfully eliminated the need to install PoS machines, thus reducing the operational cost of merchants. They can enjoy more benefits by this viable payment solution.
- UPI payment gateway allows the merchants to collect payments from a wider set of audience. It is a super affordable bulk payment collection method for small and growing businesses. As a mobile payment innovation in the real-time market, UPU brings all the main stakeholders including the customers, merchants, banks and other financial institutions on a single platform.
In growing countries like India, Unified Payments Interface (UPI) is indeed a big step towards achieving an exceptional cashless economy. This innovative payment infrastructure has already given a much required boost to our economy as the number of users is increasing day by day. UPIs have left behind all the other payment methods far behind, and there’s absolutely no surprise how!
The simplicity, convenience and openness of the UPI payment gateway is now less than a boon to the digitized economy of India.