The immense popularity of the concept of making online cashless payments has led to the advent of the system known as UPI (Unified Payment Interface). Through the use of UPI, online payments have become seamless making it easier for the end users to make online transactions with a single swipe on their smartphones. In this article, we will explain everything you need to about UPI (Unified Payment Interface).
What is UPI?
UPI stands for Unified Payment Interface. When put in simple words, it can be referred to as the online system of making payments that allows you to transfer money with the help of your smartphone. You must be thinking that money can also be transferred online with the help of smartphones using other banking apps, then why use the UPI system? How is UPI different?
When you are transferring money using the specialized banking apps through online banking (either IMPs or NEFT), you are required to know the receiver’s account number & bank’s IFSC code. Then, you will need to add the receiver as your beneficiary towards making the required transfer. Moreover, sometimes it might take a few hours to days to add someone as your beneficiary with the online banking apps.
When you are looking for a simpler mode of money transfer online, the role of UPI comes in. With the help of UPI, you can transfer money by just knowing the receiver’s or the beneficiary’s phone number or VPA. As such, when you make the desired transfer, the money directly goes into the receiver’s bank account from your bank account. There is no need for knowing the receiver’s bank account number or the IFSC code. Moreover, there is no involved of any third party as well.
How Does UPI Work?
For using the UPI functionality, you need to download the UPI app on your smartphone. You can do it by going to the app store of your phone and then, downloading the app. Once you open the UPI app, you are required to enter the VPA (Virtual Payment Address) of the beneficiary or the receiver. Then, you can confirm the amount of money that you wish to transfer and send the same. By doing these simple steps, you can successfully transfer money from your bank account to the receiver instantly.
As it can be observed, for sending & receiving money using the UPI app, there is no need for providing any additional information like bank account number, IFSC code, and others. Moreover, to ensure the overall safety & reliability of your transactions, you must note that the UPI app is backed by the Indian Government through the NPCI (National Payment Corporation of India).
How to Get Started with UPI?
Using the feature of UPI (Unified Payment Interface) is highly simple and involves only a few steps. Here are some points for you to get started:
Now you can start using the UPI app to make online payments, transfer funds, and carry out a plethora of online transactions with much ease!
Benefits of UPI
Using the online mode of money transfer through the UPI app, you can move around fearlessly with no need for carrying cash around everywhere. Have a great time using this app!