What Is UPI Payment? Explained: The digitization of India has changed a lot of things for the people living here. From street vendors to large malls, as of now, all of them accept the UPI payments. UPI or Unified Payments Interface allows various bank accounts to pay and receive money without any hassle. For immediate real-time bank account transfer, people prefer UPI payment more as compared to other money transferring alternatives.
While using UPI in our daily life, there must have been a time when a majority of people have wondered what actually UPI means, how it works, and what are the apps or software based on UPI. To answer all your UPI related queries, here we have tried to mention everything about UPI.
What is UPI?
Unified Payments Service, abbreviated as UPI, was introduced by the National Payments Corporation of India in 2016. It allowed consumers to transfer and receive money from any bank account. The interface is based on smartphones and helps in transferring funds from one bank account to another instantly. The best part about UPI is that it lets a single app get linked with multiple bank accounts of an individual and they can use any of the accounts at the time of transaction.
In order to send or request money via UPI, various apps provide multiple options. You can use your UPI ID, mobile number to send or request money from someone. Moreover, you can also send money to someone directly from UPI apps by entering their account number, IFSC code, or by scanning their QR code that has the banking details of an individual.
Note: If you use multiple SIM cards then you should keep it in mind that you need to use the particular mobile number at the time of UPI registration that is linked to your bank account.
Benefits of UPI Payment Apps
- UPI Payments can be used to transfer the money instantly and there is no restriction on UPI transfers even if there is a registered holiday or a Sunday.
- In case any of your payments get stuck in the processing stage, then you can directly file a complaint via the UPI payment app you are using.
UPI Apps in India
The regular hike in the use of UPI payments in India led to the development of more than a dozen UPI apps for both Android smartphones and iPhones. Most of them offer surprising discounts and require minimal details to start the services. We have listed down the top 4 UPI payment apps that you can rely on in terms of privacy and services.
Top 4 UPI Payment Apps For Android In India
It can be said to be one of the best UPI payment apps for Android and iOS. The app has already crossed more than 100 million downloads on the Google Play Store and has a 4.3-star rating too. It allows you to place orders from different outlets using UPI based payments and provides you different offers and cashback on most of the transactions. You can link your bank account with the app to instantly use them for any transaction while online shopping or ordering your favorite food.
The PhonePe switch feature allows you to use different apps without even downloading them including apps for booking movie tickets, grocery, shopping, food ordering, and a lot more.
At the time of demonetization in India, Paytm emerged as a savior for a lot of people and the app has its own perks. After completing your KYC on the app, you can use the Paytm wallet to perform all your transactions and you can even link your bank account to the app. Paytm also allows you to scan the QR code of a merchant and complete the payment. Whether it is about checking your credit score, buying Fastag, or getting huge discounts at Paytm Mall, you can rely on the app for everything.
Google Pay is a UPI payment app introduced by Google which has registered its place in editor’s choice. The app allows you to perform all transactions including transferring money, paying electricity bills, paying bills while online shopping, and a lot more. You just need to make your account on the app using the mobile number registered with your bank account.
BHIM: Making India Cashless
BHIM can be said to be the most sorted and user-friendly app available on the list. It offers an easy to use interface with a quick registration procedure. You only need to create your account with the mobile number registered with your bank account. You need to keep it in mind that you should have the registered SIM inserted in your smartphone. Apart from that, you are also supposed to keep your debit card handy to generate the UPI PIN.
FAQs related to UPI
Personally and as per the reviews and feedback, PhonePe can be said to be the best payment app in India. It offers one of a kind payment interface along with a 24×7 quick assistance for any payment related issues.
In simple words, UPI or Unified Payments Interface is a platform on which transactions are based these days. On the other hand, BHIM is a UPI payments app that is used to perform these transactions.
In net banking, you need to add a beneficiary for every transaction you are going to do. When it comes to UPI payments, you just need to enter the UPI ID of the individual whom you want to send or request the money. It can be figured out here that UPI transactions are a bit easy and comfortable as compared to net banking.
Until now, the UPI transactions are completely free but as per the latest reports, banks are soon going to lay a minimal charge on the UPI payments. However, it cannot be said that the news is confirmed as there is no official update regarding that.