Unified Payments Interface, or UPI, is a gamer changer technology. UPI works using a UPI-enabled smartphone app and allows you to make real-time digital payments. You can utilise UPI to receive and send money, pay bills instantly, and authorise transactions using a single app. Let us understand UPI, how it works, and its various benefits.

About UPI

If you are wondering, ‘What is UPI?’, UPI is a real-time payment system in India. It has been developed by the NPCI and is regulated by the RBI. You can utilise this payment system to link one or more Bank Accounts in one smartphone app and transfer funds without having to provide the Account number or IFSC code.

How does UPI work?

UPI is slowly becoming the most preferred form of online payment for individuals. To utilise UPI, users require a Virtual Payment Address or VPA to carry out any transaction. To transfer funds via UPI, you need the following:

• A smartphone
• An active Bank Account and the mobile number linked to such an account.
• Stable Internet connection

What is a UPI payment?

If you are unsure about the question, ‘What is a UPI Payment?’, you are at the right place. It refers to a transaction you make using the UPI platform. You can make UPI payments using various methods. This includes using a mobile number, QR code, UPI ID, etc.

Benefits of UPI

The various benefits of UPI payments include:

• Offers quick transfers

UPI payments are processed instantly. This makes sure the funds reach the account of the beneficiary within seconds.

• Eliminates requirements for bank details

Now that you know the answer to the question, ‘How does UPI work?’, you should also be aware that UPI eliminates the requirement of remembering and sharing all the details about the Bank Account for every transaction. Instead, you can utilise the UPI ID or mobile number to make payments. This makes the process hassle-free and quick.

• Round-the-clock availability

You can utilise UPI services 24X7. You also do not have to worry about bank holidays and working hours. Instead, you can carry out transactions and payments using UPI at any time.

• Offers security

UPI uses a two-factor authentication system. This ensures that the transactions are secure. It also minimises the risks related to fraud.

• Lets you link multiple accounts

When you opt for UPI, you can link and manage multiple Bank Accounts from one UPI-enabled application. This makes managing and tracking your finances easier.

• Eliminates the need for cash

UPI offers a user-friendly interface to users. This simplifies the process of making payments. Besides, when you opt for UPI, you can pay using your smartphone. This eliminates the requirement of carrying your Credit or Debit Cards as well as cash everywhere.

Conclusion

Now that you know the details about UPI, how it works, and its various perks, you can conveniently utilise this payment system and enjoy its advantages.