Due to their ease of use and ability to carry out transactions efficiently, digital modes of transactions are now becoming popular. Unified Payment Interface (UPI), one of the most popular modes of digital payments, ensures swift and safe payments with just a single tap. Since the Government of India has boosted digital payments in recent years, UPI payment has been widely accepted as a payment mode across the country.
Gone are the days when people used to carry cash, as due to the increasing penetration of internet-enabled smartphones, one can make payments on the go. You might have witnessed that bank cash counters are no longer crowded as cash withdrawals and deposits are just a few clicks away. The adoption of tech for banking and payment through applications has made real-time fund transfers hassle-free and quick.
What is UPI?
UPI (Unified Payment Interface) is a real-time payment platform produced by the NPCI (National Payments Corporation of India). It supports online money transfers between bank accounts via a single application. With a single tap on your smartphone, you can quickly recharge your mobile, pay your electricity bills and transact money online. Moreover, it is simple, instantaneous and free of charge. Also, a UPI payment can be made round the clock throughout the year.
What are the benefits of UPI?
Remember, a single UPI application can be used for different bank accounts. You simply need to link your multiple bank accounts to your UPI-based application. In my case, I use the Bajaj Finserv mobile application, and I’d advise the readers that instead of using various applications for different purposes, go for an all-in-one app like this one. Also, you can use any bank account to make payments because all the accounts can be accessed from a single place.
Instant Transfer and Round-the-Clock availability
A UPI payment is done instantly and is available round the clock. It is pertinent to mention that it is faster than both NEFT (National Electronic Funds Transfer) and IMPS (Immediate Payment Service). Factually, NEFT can take up to 12 hours for money transfer, and IMPS has at least 30 minutes waiting period for IMPS registration. However, UPI is available instantly and on the go.
Before UPI came into the game, you may not have paid a small amount of money like Rs 10 or Rs 20 by using your debit or credit card. These card transactions are costly, and small shopkeepers avoid them. However, UPI has changed the entire scenario, and every street vendor or shopkeeper is ready to accept a UPI payment. Since the UP has come into play, the trips to ATMs have reduced.
Rewards & Cashbacks
All the UP applications compete to capture the maximum number of customers. And to lure them, many UP applications are giving rewards and cash back for making transactions.
UPI Pay later
What happens when you run out of funds? What if you witness a low balance notification? Well, the name says it all. It means you can easily spend over and above your bank balance on a UPI application by opting for PayLater and conveniently clear your dues within a stipulated period and at a reasonable interest rate.
Why is it popular?
The UPI applications have a user-friendly interface that makes it easier to execute online payments efficiently. You can easily link multiple bank accounts on a single app. However, the amount gets debited directly from your bank account. Meanwhile, if you ever feel that you are facing a financial crunch, the option of UPI pay later is also available in certain applications like ‘Bajaj Finserv: UPI, Pay, Loans’.
(I’ve been using this application for the past one and a half years)
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Is UPI safe?
It is totally safe and secure. You can quickly transfer funds using your Virtual Payment Address (VPA). Now, what enhances the security level are features such as two-factor verification and merchant authentication. Therefore, if one goes by the NPCI, it is the most secure platform for cashless transactions.