First, there were paper notes, then card swipes, and now UPI payment online. How far have we come if we no longer need to bring our wallets when shopping? Pay by simply scanning the QR code through your phone.
The Unified Payments Interface (UPI) was like a game-changer during the pandemic when the social distance was the most important norm. Since independence, the best financial innovation in India has been the instant real-time payment system, which has seriously started completely replacing the cash economy.
What is UPI?
The Unified Payments Interface (UPI) is a digital payments gateway system that integrates multiple bank accounts, seamless amount transfer, uninterrupted fund tracking, and merchant payments into a single mobile application.
It also performs “Peer to Peer” collection requests, which can be scheduled and paid as needed and convenient. One of the Unified Payments Interface’s most productive features is instantly transferring money using a round-the-clock mobile device.
One mobile app can access multiple bank accounts, allowing for the payment of utility bills, over-the-counter purchases, and QR code-based purchases, among other things. The accessibility and versatility of QR scanning for digital payments have also increased the number of digital payments over the past few years.
While using net banking and mobile banking, a customer must undergo several prerequisite steps, such as registering a payee or beneficiary and creating an OTP. Similar rules apply to mobile/digital wallets, where money must be transferred through bank accounts using a protracted and laborious process. Because it does away with the hassle of third-party payments, UPI payment has an impressive advantage over net banking.
You can now quickly transfer a small sum to your fruit vendor thanks to UPI app online payments. The hassle of getting the correct change is conveniently replaced by Paytm or BHIM cards hanging at grocery stores. Take into account the shorter lines at the ATMs. In the age of digital India, ditching cash eliminates a lot of hassles from your life and improves efficiency.
Because of security concerns, people are hesitant to use cashless methods. What if your PIN is forgotten while punching it into the POS terminal? What if a website steals the information from your credit card and uses it for an international transaction?
The UPI app payment brushed aside this worry. In actuality, it is safer than the current method of transaction. You never divulge your bank account information during a UPI transaction. Your CVV and credit card number are not entered. A virtual payment address is all you provide; it contains no information about your bank account.
Additionally, authentication happens on your smartphone. Punching the UPI PIN is how it is done. You can make it unnoticeable while typing on your smartphone.
Cashbacks and Rewards
People use the UPI payment app to win rewards and exciting coupons. As a result, many UPI apps offer rewards and cash back for making transactions to entice users. UPI apps reward users for using UPI payments with cashback and rewards.