Digitalisation has increased dramatically over the years. Today, smartphones are not just used to make calls or send SMS or chatting. Just a click of your finger can conduct various financial transactions. The National Payment Network Company (NPNC) has taken smartphone usage and banking transactions to a whole new level through Unified Payment Interface (UPI). The UPI launched in April 2016, assist customers to send and collect money using smartphones. Over 21 banks are linked to the UPI system.
The UPI does not ask for bank details. Instead, it follows the Virtual Payment Address (VPA) mode for transferring money to another account.
How do users benefit using UPI payment method?
1) Cheapest money transfer system: UPI allows low-fund transactions and charges a fee as reasonable as INR 50 paise. No wonder it is considered a more economical model for transferring money than NEFT and RTGS.
2) Free from cash: Cash transactions rarely happen nowadays. Mobile wallets, net banking and card payment are on the rise. In case of small operations, cards and net banking options are not considered. If you have to do grocery shopping or purchase vegetables, it is feasible to use the UPI payment tool to complete the purchase. In fact, visit to ATMs have lessened, thanks to UPI.
3) No requirement of bank details: One of the major concerns with regards to online financial transactions has been the misuse of bank details. Whenever you make a card payment, details have to be provided. However, through UPI one need not share any bank details. All UPI asks for is VPA which is similar to our email ids.
4) Instant transfer: While NEFT and RTGS work on a settlement basis, IMPS and UPI are 24*7 banking services. Transactions can be conducted anytime and anywhere. It works even during public holidays and weekends.
5) One UPI app for many accounts: One of the important benefits of UPI payment system is that you can link several bank accounts to it. A single UPI can serve many bank accounts. You can set a default account for making the payment.
6) Multiple UPI apps: It is not customary to use the UPI through your banking app. You can use your UPI account via different mobile banking apps as well. However, check the interface before using an app. Remember, the moment you use UPI from another bank, you would have to apply for a new VPA.
7) Registration period: In the RTGS and NEFT systems, the waiting period after registering a payee is either half n hour or 24 hours. In case of UPI, the beneficiary gets registered instantly and transferring the amount gets simpler.
8) Cash on Delivery facility without paying money: Most of us are addicted to online shopping. The preferred mode of payment that people go for is cash on delivery. That is because what if the distribution is delayed? What if you do not receive the product? What if the product is defunct? However, if the purchase is big and there is not enough cash at home, you might have to rush to ATM. The UPI mode ends this hassle. You can make fund transfer with UPI. Ensure the online seller uses the UPI payment mode. You would receive payment approval from the seller once the fund is transferred. Nevertheless, you can hold it till the delivery is done securely.
Funds can be needed at any moment. Accidents, health mishaps, etc. are unpredictable. In such circumstances, online fund transfers play a crucial role. With so many benefits, Unified Payment Interface system stands out amongst the rest of online payment modes.
The UPI does not ask for bank details. Instead, it follows the Virtual Payment Address (VPA) mode for transferring money to another account.
How do users benefit using UPI payment method?
1) Cheapest money transfer system: UPI allows low-fund transactions and charges a fee as reasonable as INR 50 paise. No wonder it is considered a more economical model for transferring money than NEFT and RTGS.
2) Free from cash: Cash transactions rarely happen nowadays. Mobile wallets, net banking and card payment are on the rise. In case of small operations, cards and net banking options are not considered. If you have to do grocery shopping or purchase vegetables, it is feasible to use the UPI payment tool to complete the purchase. In fact, visit to ATMs have lessened, thanks to UPI.
3) No requirement of bank details: One of the major concerns with regards to online financial transactions has been the misuse of bank details. Whenever you make a card payment, details have to be provided. However, through UPI one need not share any bank details. All UPI asks for is VPA which is similar to our email ids.
4) Instant transfer: While NEFT and RTGS work on a settlement basis, IMPS and UPI are 24*7 banking services. Transactions can be conducted anytime and anywhere. It works even during public holidays and weekends.
5) One UPI app for many accounts: One of the important benefits of UPI payment system is that you can link several bank accounts to it. A single UPI can serve many bank accounts. You can set a default account for making the payment.
6) Multiple UPI apps: It is not customary to use the UPI through your banking app. You can use your UPI account via different mobile banking apps as well. However, check the interface before using an app. Remember, the moment you use UPI from another bank, you would have to apply for a new VPA.
7) Registration period: In the RTGS and NEFT systems, the waiting period after registering a payee is either half n hour or 24 hours. In case of UPI, the beneficiary gets registered instantly and transferring the amount gets simpler.
8) Cash on Delivery facility without paying money: Most of us are addicted to online shopping. The preferred mode of payment that people go for is cash on delivery. That is because what if the distribution is delayed? What if you do not receive the product? What if the product is defunct? However, if the purchase is big and there is not enough cash at home, you might have to rush to ATM. The UPI mode ends this hassle. You can make fund transfer with UPI. Ensure the online seller uses the UPI payment mode. You would receive payment approval from the seller once the fund is transferred. Nevertheless, you can hold it till the delivery is done securely.
Funds can be needed at any moment. Accidents, health mishaps, etc. are unpredictable. In such circumstances, online fund transfers play a crucial role. With so many benefits, Unified Payment Interface system stands out amongst the rest of online payment modes.
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