With the arrival of the age of net-banking and mobile apps, the methods of making payments have so evolved that you can transfer and receive money in your bank account in a matter of minutes. Systems like IMPS, RTGS and NEFT were initiated years ago to make banking convenient. But nothing holds a candle to the world’s most advanced payment system; the United Payment Interface, a revolutionary payments system initiated in India.
Understanding the term
Developed by the National Payments Corporation of India, United Payment Interface or UPI is an instant, real-time payment system that facilitates inter-bank transactions. It powers multiple bank accounts into one unified mobile application (of participating banks) and merges various banking features such as fund routing and merchant payments into one application. Regulated by RBI, this digital payment system is available 24*7. Every participating bank provides their own UPI app available for download on Android, iOS and Windows platforms. UPI deposits and withdraws funds from your chosen bank account whenever you request a transaction. Simply put, you can link all your different bank accounts into one application and conduct seamless transactions between them.
Features of UPI
Thanks to the UPI interface, users can avail numerous services and carry out the following transactions
• Sending and receiving fund
• Raising requests for funds
• Users can use another government initiated app, the BHIM app to make payments to merchants via QR codes (as in PayTM)
• Paying for several services such as cabs, restaurant services etc.
UPI interface key drivers
The main goal of implementing the United Payment Interface was simplifying the process of transactions and providing a single interface across all banking segments. The key drivers used to achieve this end include:
Simplicity: The idea behind UPI is to receive and make payments as easily as you make a call on your mobile phone. Just like making calls, accounts holders should be able to send and receive funds from their cell-phones, with the help of an identifier, excluding the hassle of other account details. Users can “pay to” or “collect from” a specified payment address like Adhaar card, mobile number, RuPay card etc., with a single click.
Adaptability: Since the potential user base was intended to be scalable and of use to billions, it became necessary to have an adaptable application. The UPI interface is designed to allow gradual adoption across smartphone users along with the ability to make use of information available across various payment players and phones. People using advanced phones can send money to those using basic phones and vice-versa.
Security: Security is always a major concern for users of advanced banking technologies like making a UPI payment. This interface provides end-to-end security as well as data protection. Important data like personal banking details are not revealed, reducing any chances of misuse. Added authentication features provide security against risks like phishing.
Apart from these factors, the UPI interface is also cost-effective and innovative.
Understanding the term
Developed by the National Payments Corporation of India, United Payment Interface or UPI is an instant, real-time payment system that facilitates inter-bank transactions. It powers multiple bank accounts into one unified mobile application (of participating banks) and merges various banking features such as fund routing and merchant payments into one application. Regulated by RBI, this digital payment system is available 24*7. Every participating bank provides their own UPI app available for download on Android, iOS and Windows platforms. UPI deposits and withdraws funds from your chosen bank account whenever you request a transaction. Simply put, you can link all your different bank accounts into one application and conduct seamless transactions between them.
Features of UPI
Thanks to the UPI interface, users can avail numerous services and carry out the following transactions
• Sending and receiving fund
• Raising requests for funds
• Users can use another government initiated app, the BHIM app to make payments to merchants via QR codes (as in PayTM)
• Paying for several services such as cabs, restaurant services etc.
UPI interface key drivers
The main goal of implementing the United Payment Interface was simplifying the process of transactions and providing a single interface across all banking segments. The key drivers used to achieve this end include:
Simplicity: The idea behind UPI is to receive and make payments as easily as you make a call on your mobile phone. Just like making calls, accounts holders should be able to send and receive funds from their cell-phones, with the help of an identifier, excluding the hassle of other account details. Users can “pay to” or “collect from” a specified payment address like Adhaar card, mobile number, RuPay card etc., with a single click.
Adaptability: Since the potential user base was intended to be scalable and of use to billions, it became necessary to have an adaptable application. The UPI interface is designed to allow gradual adoption across smartphone users along with the ability to make use of information available across various payment players and phones. People using advanced phones can send money to those using basic phones and vice-versa.
Security: Security is always a major concern for users of advanced banking technologies like making a UPI payment. This interface provides end-to-end security as well as data protection. Important data like personal banking details are not revealed, reducing any chances of misuse. Added authentication features provide security against risks like phishing.
Apart from these factors, the UPI interface is also cost-effective and innovative.
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