UPI - A step towards a fully functional digital ecosystem
In this digitally advanced era, everything has become online. There has been a change in the operations of the banking industry. The Unified Payment Interface (UPI) has taken a toll on other modes of payment. Not just India, but other countries have also witnessed the digital revolution brought about by UPI. Wondering what UPI payment is or how is it fully transforming the digital economy? Here is a guide for you to explore more.
What is UPI?
UPI is a digital payment platform that helps users to link more than one bank account in a single app. With just a few clicks on your smart device, you can quickly transfer money to other accounts without providing an IFSC code or account details. It is a real-time payment system through which you can instantly transfer money on a real-time basis.
The introduction of UPI payment in 2016 was the first major step that was taken towards a cashless economy. It was developed by the NPCI (National Payments Corporation of India), which is a non-profit organisation. It is an interoperable system for making payments with minimum inputs. With this platform, you can use your smartphone as a virtual debit card for making transactions and can receive and send money as and when required. As a result, UPI has made it extremely easy for customers to make online transactions without any effort.
A UPI app can be accessed using a PIN. After that, you can use your mobile number, UPI ID, or UPI QR code to make the payment. While making a UPI payment, you need to make sure that both the sender as well as the receiver have a UPI-enabled bank account to facilitate the transaction. You can use UPI to make numerous payments like FASTag, groceries, DTH, loans, and much more.
UPI- A unique digital platform
UPI has gained much popularity because it is a unique digital platform. Here is the list of reasons that make UPI a unique platform:
- Immediate, round-the-clock money transfer facility that is available 24*7.
- With a single mobile application, you can access different bank accounts and use them for transactions.
- Single click two-factor authentication facility that is aligned with regulatory guidelines to ensure the security of the personal information of the users.
- The virtual address of the customer provides additional security and ease, as the customers do not have to enter details like credit number, account number, IFSC code, etc., to make the transaction.
- Easy and hassle-free UPI QR code to make the transaction in just a few seconds.
- Puts an end to the hassle of cash on delivery, running to the ATM, or rendering the exact amounts.
- Merchant payment with a single application is possible.
- Better integration with BBPS for seamless flow.
- You can easily make utility bill payments, over-the-counter payments, and QR code-based payments at your convenience.
Tapping use cases
UPI has the potential to digitise the entire financial system. Here are some of the use cases of UPI ID:
- Travel
- E-commerce
- Subscription
- Corporate and SMEs
- NBFCs
- Healthcare
- Micro merchants and much more
Now that you know how UPI payment is transforming the digital ecosystem, start using it to simplify your payments. Download the Bajaj Finserv app to enjoy seamless digital payment services. We offer 24*7 services and a user-friendly interface. Log in to the Bajaj Finserv app, create a UPI ID, and get a chance to enjoy numerous cashback and deals on every bill payment.
