Online payments have revolutionized the way people transfer money to each other. UPI or Unified Payment Interface has made it easier for people to transfer money instantly and securely from one account to another. In this guide, we will look into how to set up and use UPI to transfer money.
What is UPI?
UPI or Unified Payment Interface is a real-time payment system developed by the National Payments Corporation of India. It allows users to transfer funds between bank accounts using a mobile device. UPI is integrated with various banks, and users can link their bank accounts to a UPI payment address to make transactions. UPI enables users to transfer funds 24/7, 365 days a year, instantaneously, and securely.
Why do people prefer UPI or online payments?
UPI and online payments have gained popularity in recent years due to their numerous benefits. With UPI and other online payment systems, people no longer have to carry cash, credit or debit cards, and worry about losing them or having them stolen. Online payments also provide convenience as it eliminates the need to visit banks or ATMs. Payments can be made from the comfort of one’s home or workplace using a mobile device.
People also prefer UPI and online payments as they are fast, secure, and easily trackable. Once a payment has been made, the transaction details are sent to both the sender’s and receiver’s bank accounts via SMS. UPI offers users peace of mind as it is an encrypted system and adheres to strict safety protocols.
Advantages of UPI payments or online payments
– Faster Transaction Process: UPI transactions occur in real-time, making it quicker than other payment methods such as NEFT.
– No Additional Fees: There are no additional fees involved in making a UPI payment, making it a cost-effective payment option.
– Secure: UPI implements a two-factor authentication process, making it a secure payment option. It ensures the safety of transactions with high-end encryption technologies.
– Convenient: UPI allows for smooth transactions. The payment process can be done with just a few clicks, and it can be done anytime, anywhere.
– No Need for Bank Details: UPI payments do not require the bank details of the receiver. It instead asks for a UPI ID, which is easy to remember.
Disadvantages of UPI payments or online payments
– No Cashback: The incentives and cashback offered from UPI payments are lower than credit/debit card transactions.
– Limited Compatibility: UPI payments are still new in the country, and not all banks have support, leading to compatibility issues.
– Dependency on Mobile Devices: UPI transactions require a smartphone, and internet connection and are heavily dependent on factors such as battery life and network quality.
UPI Unified Payment Interface and other online payment methods have enabled people to transfer money electronically without the need for cash or cheques. These payment methods allow customers to make transactions through mobile devices, laptops, or desktop computers. They have gained popularity in recent years due to their speed, convenience, and security.
Feature of UPI or online payments
- Ease of use: Online payment methods have made it easier for customers to make transactions from the comfort of their homes, offices, or on the go. Online payments reduce the need to visit banks or ATMs, saving time and effort.
- Multiple Payment Options: Various online payment methods enable customers to transfer funds from one bank account to another, pay bills, recharge prepaid mobile phones or DTH accounts, and buy products or services from online stores.
- Cost-Effectiveness: Online payment methods, including UPI, are cost-effective as they eliminate the need for physical infrastructure, such as bank branches, servers, and storage facilities.
- Faster Processing Time: UPI and other online payment methods allow for real-time transactions, enabling quick transfers of funds between bank accounts. Transactions can take place at any time of the day, are completed within seconds and are secure.
- Customizability: UPI and other online payment methods enable customizability in transaction limits, frequency, and transaction history. Online payment methods provide customers with more control over their payment transactions.
- Security: Online payment methods use advanced encryption technologies to secure transactions from the sender’s bank account to the recipient’s account. These methods have fraud detection systems to prevent unauthorized transactions.
- Accessibility: Customers can access online payment methods from anywhere and at any time using their mobile devices or computers.
- Personalisation: UPI payment systems are customisable as they allow you to create a unique ID, which is easier to remember than your bank details.
Setting up UPI
To use UPI, follow the below-mentioned steps:
- Download a UPI Pay App: Download a UPI Pay app like Google Pay, Paytm, PhonePe, or BHIM.
- Registration: Enter the registered mobile number associated with your bank account, and the app will verify the number through an OTP.
- Linking bank account: Click on the “Add Bank Account” option on the app and select your current bank.
- Create UPI ID: Under the “Bank Account” section, create a unique UPI ID.
- Set MPIN: The next step is to set a 4 or a 6-digit MPIN.
- Link Multiple Bank Accounts: You can link multiple bank accounts to use multiple bank accounts to make transactions.
Using UPI
Once the UPI app is registered and set up, it can be used to transfer funds to other UPI IDs. Follow these steps for transactions:
- Open the app and select the “Send Money” option.
- Enter the recipient’s UPI ID or mobile number.
- Enter the amount to be transferred, and select the bank account from which the transaction needs to be initiated.
- Enter the UPI PIN to authenticate the transaction.
Bajaj Finserv App’s option for UPI payments
Bajaj Finserv offers a range of financial services, including money transfers through the Bajaj Finserv App. The app is safe, and secure, and offers unique features such as pre-approved offers and instant loans. The Bajaj Finserv App also provides seamless integration with UPI-enabled banks, making it easy to transfer funds.
Other UPI pay apps
Other UPI pay apps available in the market include Google Pay, Paytm, PhonePe, BHIM, and more. These applications offer unique features such as cashback, discounts, and loyalty points. Users can choose the app of their choice as per their convenience and requirements.
Conclusion
UPI revolutionized the payment landscape in India by providing fast, secure, and cashless transactions. The process of setting up and using UPI is straightforward and customer-friendly. While UPI payments have a few limitations, it is a cost-effective solution for most digital payment needs. Users have the option of selecting the app of their choice from various UPI pay apps available in the market to make transactions.
