First ever growth in India for building up a world-class digital economy was earmarked by the introduction of the Unified Payment Interface (UPI), which has transformed the dynamics of online payments. With the demonetization and current COVID pandemic, the demand for UPI has been skyrocketing. Today UPI is ubiquitous and the largest retail payment system in the world. Wondering what UPI is and how it is the driving force of economic growth in India? Here is the detailed guide for you:
What is UPI?
The Unified Payment Interface (UPI) is a mobile payment method that helps users to transfer money to another party with just a few clicks on the screen. It helps to facilitate two inter-bank types of transaction, which includes:
- Peer-to-Peer (P2P) transactions
- Person-to-Merchant (P2M) transactions
You can easily link multiple accounts to a single UPI payment app like Bajaj Finserv and make transfers instantly, without any hassle, by entering in banking details whenever you wish to. It not only helps in enabling bank transfers but also helps in boosting transparency and interoperability. The Bajaj Pay UPI payment app uses a unique identifier to facilitate money transfers and works 24*7. You can easily make a contactless payment with a UPI by generating a UPI QR code.
Types of UPI Transactions?
UPI transactions are mainly categorized into two types:
- Direct Payment
Direct payment is also referred to as push payment. It is the process where the payer initiates the transaction by transferring money to friends/family or the merchant at the checkout by scanning the UPI QR code or using the UPI ID.
- Collect Request
Collect request is the transaction where the receiver starts with the transaction. For example, you choose the payment method via UPI while shopping online and enter the details. Then a request with the bill amount will be shared with your Bajaj Pay UPI payment app. Once you accept the request, the payment will be processed. It is also known as pull payment and can be processed with UPI ID.
Features and Benefits of UPI
UPI has undoubtedly made financial transactions much easier and hassle-free. Here is a list of some of the benefits of UPI:
- Universal Payment System for Accessing Multiple Bank Accounts
UPI payment helps users to link numerous bank accounts to a single UPI-based application. It is undoubtedly the main advantage of UPI, as it helps to eliminate the need to download numerous apps from different banks.
- Easy and More Secure Transactions
The security and privacy concerns are addressed by UPI. With a UPI ID, users can transfer funds instantly. Before making any transaction, you will not have to continue the process of entering bank details again and again. Additionally, this payment mode has a single-click two-factor authentication that helps to protect users from cybercrime.
- Expansion in Business Opportunities for Banks
UPI has made P2M transactions hassle-free and straightforward. In this digital era, almost every local shop and street vendors have a UPI QR code for the facilitation of UPI payments. This further helps in supporting the growth of the e-Commerce business and has made shopping quite easy and effortless.
With the Bajaj Pay UPI payment app, the user enters in the details like UPI ID and gets an alert on their smart device to verify the transaction and complete them within a few seconds. This advancement in technology helps to offer banks an opportunity to infiltrate the e-Commerce makeeover.
- No Need to Register Beneficiary
UPI does not ask users to fill in bank details to register the payee as a beneficiary. This helps to reduce the time of transaction and payers’ efforts.
- Instant Transfer- Anytime, Anywhere
UPI-based transactions can be made for 365 days, anytime, anywhere, as the services are available 24*7 hours. Moreover, these services are not interrupted by any banking hours, bank/ public holidays or because of bank strike.
With more than 200 million users and 323 banks involved, UPI exhibits a rise in the number of users and transactions. NPCI and RBI are constantly scaling up UPI services. Bajaj Finserv offers the safest and most secure UPI payment option that is guarded by NPCI guidelines. You can make payments to merchants worldwide in just a few minutes by scanning the UPI QR code. Also, these payment services are 24*7 hours available to allow the users to enjoy seamless payment methods.
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