UPI is the acronym for Unified Payment Interface. It is an eccentric feature that is used as an email ID for money transactions. UPI payments are a unique identifier employed by most of the banks for money transfer and the making of payments using the Immediate Payments Service (IMPS). Immediate Payments Service is faster than NEFT (National Electronic Funds Transfer) and enables easy money transaction within a fraction of seconds and operates non-stop 24×7. No debit card or credit card is required for making online payments. UPI payment got launched in January 2016 and is the brainchild initiated by National Payments Corporation of India’s (NPCI). UPI payments were set up with the support of the Reserve Bank of India and Indian Banks Association (IBA). It can be correctly termed as the advanced IMPS version.
Working of UPI payments
UPI payment is not at all hectic and the idea behind UPI is to make a transaction that is less hectic and does not require an account number, account type, Bank name and IFSC code for making any bank payment. It takes comparatively long time for the transaction and almost 12 hours to add a new payee. This UPI payment is fairly simple and allows money transactions by just using unique identity number of the Aadhaar card and mobile phone number. Sending and receiving of money is done through UPI payments by using ‘Virtual Payment Address’ (VPA). Till date, 29 Banks have started this payment method out of which few well-known banks are ‘ICICI Bank’, ‘Axis Bank’, ‘Punjab National Bank’ and ‘HDFC Bank’. For UPI payments you can switch to both global and local address.
Example of UPI payments
If you use a cab service, at the end of your destination you just have to provide your Virtual Payment Address (VPA) and the driver will request money from there. An authentication message will appear on your phone. Once you authenticate the transaction by entering your password, the process will be completed. This process doesn’t mandate sharing of any details of your Bank.
UPI payment platforms
A handful of social media platforms have welcomed or are soon going to welcome UPI payments.
Whatsapp – It had received permission from NPCI in order to make a partnership with multiple banks to allow users to make money transfers and payments. Axis Bank, ICICI Bank and Punjab National Bank (PNB) are some of the Banks, Whatsapp is in talks with.
UPI payment apps
There are various payment apps that incorporate UPI payments for easy money transaction through smartphones without additional details. Popular payment apps such as ‘Paytm’, ‘MobiKwik’ ‘PhonePe’ and ‘Digital Wallet’ launched this UPI payment service that enabled easy sending and receiving of money. Paytm launched UPI payment in January 2017, PhonePe launched UPI payment in August 2016 and MobiKwik launched it in October 2016.
UPI payment services had made transactions easier and flexible. No hard and fast rules are there in order to transfer money and it operates on both global and local address. No additional details are required and you can use this technology for making payments anywhere and anytime owing to its 24×7 service.