UPI: How Does It Work and Why Do You Need It?
A Unified Payment Interface – UPI is best described as a smartphone app that makes it possible to transfer money between bank accounts quickly and securely.
It is a real-time payment system that was developed by the National Payments Corporation of India and uses a singular two-click authorization process to full peer-to-peer bank transfer requests.
The payment platform was developed about five years ago and has been fully operational since about 2016. However, since WhatsApp endorsed this payment option it has become a mainstream item that is fully supported by all major banks in India, and adopted by recognized global brands such as Googlke and Paytm.
Making payments easier
The fundamental purpose of UPI is to create the ability to utilize a range of banking services by using a unified payments interface, (UPI).
When you use the app it is easy to create a UPI ID that can then be used to send and transfer money.
Another feature is the ability to make real-time bank-to-bank payments, and you can also send money using a mobile number.
This digital solution is designed to meet modern banking needs and it is considered that using UPI should make the function of sending and receiving money as easy as possible.
A key point to remember about UPI is that it offers a distinct technological advantage over other options such as NEFT, IMPS, and RTGS, mainly because it is a platform that is standardized across all of the main banks, allowing you the ability to make a bank transfer from anywhere in a matter of a few clicks.
No need to use your card details
If you are making payments to different merchants it can be a time-consuming process when you have to type in your card details and password for each transaction.
UPI gives you the ability to pay different merchants directly from your bank account without the need to enter your card details and password each time.
Great security features
The question of data security is always something you want an answer to before you give your personal details over and that is another area where UPI scores well.
UPI utilizes a security protocol that is best described as a virtual payment address. What this means is that you can give this address to the merchant so tha they can store your payment details against it without actually getting to see your account details in the process.
Why you need UPI
There are a number of valid reasons why you should consider using UPI and the bottom line is that it will become easier to make online payments.
If you are currently using a range of different options like IMPS or a digital wallet such as Paytm you can simplify the process in an instant by using UPI to complete a range of different transactions.
Whether you are placing a food order, carrying out some online shopping, or sending money to a friend or relative, UPI allows you to do all of that, without the hassle.