Post pandemic people have shifted to UPI payments that allow contactless payment using mobile phones. The number of transactions on the UPI platform has seen a steady rise post-pandemic. Of the total 2,556 crore transactions, nearly 793.40 crores occurred amidst the pandemic post-March 2020.
The RBI also continued its efforts towards the global outreach of its payment systems; it has also written to other central banks focusing on the different features of UPI as a safe system.
UPI has also eased the money transfer process and has removed the concept of a digital wallet by the idea of QR codes.
What is UPI?
UPI can be understood as a single platform that merges all the banking services and features. The UPI ID of a person is sufficient to perform money transfer and payment services.
UPI is an immediate real-time payment system that helps fund transfer between two banks using the virtual address or UPI ID.
UPI full form?
UPI full form is Unified Payment Interface, it is built and operated by NPCI (National Payment Corporation of India)
Is UPI secure?
UPI is an interface that has 2 Factor authentication along with seamless single-click payments. These features align with the regulatory guidelines that make the UPI safest.
2 Factor authentication is a similar process to the OTP service provided by the banks. However, in UPI, you gave MPIN.
The NPCI advisor, Nandan Nilekani, also assures the security of the UPI, saying that the transaction happens in a highly encrypted format. The transaction volume over the UPI has doubled over the years; according to mint reports, the usage of UPI has been touching the peaks at 2.73 billion In March 2021 and is still rising higher.
What are the benefits of UPI?
- UPI simplifies online payments
- Immediate transfer of funds through prompt payment service, which is faster than NEFT.
- One can use UPI 24 hours a day, including public holidays.
- Every bank provides its own UPI for different platforms on android, windows, and iOS.
- Bill sharing facility.
- Easy complaint filing over the mobile application.
How does UPI Work?
- To get started with the UPI, the customers need to create a virtual payment address (VPA); this VPA is linked to the bank account. The customers don't need to remember the bank account number and the IFSC code of the receiver; instead, enter the VPA of the person. The VPA is mostly the registered phone number or email followed by a "@" and the bank that provides your VPA. It becomes easy compared to the account number and the IFSC code.
- There are other methods in which the UPI payment works, along with VPA UPI also works by mobile number in which the customers need to enter the registered mobile number and receive the payment.
QR CODE is another prevalent method to receive payments through UPI; you can scan the QR CODE and receive or send the money.
Best UPI Application
Many applications provide you with the UPI Payment facilities. Some of them include Google Pay, BHIM, PhonePe, Airtel Payment, Jio payments, and a lot more.
PhonePe and Google Pay are some of the leading UPI apps in India, with over 4.4 /5 ratings worldwide. It depends upon your choice of which application you would prefer or find easy to use. All the application provides easy bill payments and bank transfers.
Here are some of the leading UPI applications and their market share in June 2021 as per the NPCI data.
PhonePe has continued to dominate the UPI app ecosystem In India with an expansion in market share to 46%.
Is Google Pay and UPI the same?
Many people use the term Google Pay instead of UPI transfer. However, they are not the same. Google Pay is a platform that supports UPI transfer. It is an interface that allows customers to use UPI payments. It provides facilities like bill payments and other money transfers through UPI. There are many other applications like Google Pay that support UPI Payments.
How to secure UPI APP?
Even after all possible security provided by the application and UPI platform, there are instances where customers have lost money to fraudsters over the applications. This mainly happened because the customers were unaware of the preventive measures to protect your UPI application.
Some of these methods are:
- Beware of transfer requests: Many fraudsters use the request payment options present over the applications. Fraudsters posing as buyers online may ask you to accept the payment request. However, one should never forget that you don't need to enter your UPI pin while receiving the payment. This kind of trick has stuck many people who unknowingly entered the Pin and lost their money.
- Do not use social media to resolve your UPI payment problems: There may be times when your payments fail, try to use the application to solve or raise any query due to an incomplete transaction. Do not use the social media handles of the UPI application to get the solution. There are cases where hackers have used the sensitive details that customers have shared over their social media handles.
- Layer up your application with pins: Always set Pin to your application to become difficult to unknown to get into your UPI application.
- Block your UPI if you lose your phone:In case you lose your phone, always contact your bank and get your UPI ID blocked as soon as possible.
- Don't download unsafe applications: It is advised not to download unnecessary third-party applications as they threaten your security applications. They may extract passwords and other sensitive information and get you in trouble.
Frequently asked Questions:
Q. What is a UPI prepaid Voucher?
These are one-time use solutions that allow cashless payment solutions in various services.
Q. What is the UPI pin?
UPI PIN (Personal Identification Number ) is a 4-6 digit code created during the registration with the application and needs to be filled before every transaction.
Q. What is the consequence of entering the wrong Pin?
If you enter the wrong Pin, your transaction fails; however, the bank may temporarily block your account for 24-48 hours if you enter the incorrect Pin multiple times.
Q. How can I view my transaction history?
You can view your UPI Transactions history in the history section of your UPI application.
Q. Can we link wallets to UPI?
No, You cannot link wallets to UPI; you can only link to your bank accounts.
Q. Can I link more than one bank account to the same Virtual Address?
Yes, you can link multiple bank accounts to the same virtual address. You can link all your bank accounts if these accounts are with banks that support UPI. Not all banks provide this service. Some banks allow you to connect only one bank account with one virtual UPI ID.
Q. Can I reset my UPI PIN?
Yes, you can regenerate your UPI PIN using your debit card details.
Q. Can I use the same VPA in different applications?
Yes, you can use multiple VPA in different applications.