In the recent past, India has witnessed tremendous growth in digital payments in general.
While this is true, no one comes close to UPI in popularity, and there is a good reason for that. It’s simple – transactions using a UPI machine are fast, easy, and convenient for your customers and business. They are by far much better than other digital payment modes, and in this article, we’ll tell you how. Read on till the end to find out!
– What is UPI?
The acronym UPI denotes Unified Payment Interface. It is a system that combines several different banking operations and features into one single application. The system allows you to make instant transactions, i.e., make and accept payment /send and receive funds from one bank account to another through your mobile device. To enable these transactions, you will need a UPI ID and a PIN.
– Banks Supporting UPI in India
Several banks in India support UPI payment. These include:
- SBI Bank
- ICICI Bank
- HDFC Bank
- Axis Bank
- UBI Bank and more
– Apps that Support UPI
The applications that support UPI include:
- Google Pay
- Mobikwik and more
If you wish to use a service like the HDFC bank debit card EMI, you will need to verify your account details first to get a UPI ID on your preferred app before initiating your transaction. The same goes for all banks.
- How is UPI Better Than Any Other Digital Payment?
There are several reasons why UPI is better than any other digital payment method. These include:
- UPI is Affordable
UPI is the cheapest and the most affordable way to make payments or transfer funds. Through a free payment gateway such as Pine Labs and others, you can transfer as little as INR 5 and not worry about the cost. The transaction charge for UPI transactions is 50 paise and below. That’s very little for anyone to think about before making their payments.
- UPI is Secure and Stress-Free
Most people avoid card payments and online transactions because they ask for too much bank account information. Card transactions ask for your CVV number, card number, and validity period. Net banking transactions, on the other hand, will expose your bank account information.
But you don’t have to worry about that when using a UPI machine because you won’t have to give up your sensitive bank account information. You will use your virtual payment address instead of that. The system works like an OTP in that you will have to undergo a two-factor authentication process through your free payment gateway, but instead of an OTP validation, you will use a UPI PIN.
Apart from that, UPI transactions are highly encrypted, making it very hard to tamper with them.
- UPI is Fast
When you think of speedy transactions, think of a UPI machine. UPI is fast and instant. It works 24/7/365 and has no limitations. With NEFT (National Electronic Fund Transfer), you can wait for as long as 12 hours to complete a fund transfer.
To use NEFT and IMPS (Immediate Payment Service) to transfer your funds, you will have to register as a new payee. The same goes for UPI, but the difference is that you won’t have to wait after you complete the registration process. As for NEFTS and IMPS registration, half an hour is the minimum waiting time before you can initiate the transaction. But UPI is available immediately.
- UPI is Universal
UPI is universal, meaning one UPI app will work just fine for all your different bank accounts. There is no need to have a separate UPI app for every bank account you might have. All you have to do is link all your bank accounts to your preferred app, and you are good to go. You are free to use any of those accounts to transact. You might also want to set a default account for your transactions.
- Multiple Choices with UPI
Banks have their own UPI apps, but that does not necessarily mean you have to use your bank’s app to transact. You are free to use any app you feel like, whether you have an account with the bank or not. Just make sure it works best for you. You can change the app whenever you want though it’s not advisable because your VPA changes each time you do it.
Do you still doubt that UPI payments are the best? If so, look around, try other methods, compare and contrast, then see what you find. There’s a 200% chance that you’ll come back to the same conclusion.