The hassle of arranging cash to pay shopkeepers has become outdated. Your smartphone is your companion and wallet. It lets you roam cashless and fulfils all your financial needs. Whether paying for food or utility bills, online payment is the trend followed by everyone. The Unified Payment Interface is a mobile payment method that lets you transfer funds between Bank Accounts without additional charges.

Ever since the UPI payment facilitation, financial transactions have become easier for account holders. It is an advanced version of banking payment methods.

How does it work?

You need to set a payment ID on the UPI app that works as a virtual payment address for the account holder and a UPI PIN to confirm the transaction. The National Payments Corporation of India, with the support of the RBI and the Indian Banks Association, built a payment infrastructure that allows banks to connect and facilitate fund transfers among individuals.

Why is it flourishing so well?

To transfer money from this app, you do not require the receiver’s details. You only need their UPI ID to transfer funds directly into their Bank Account. Unlike other payment methods, these transfers are hassle-free and quick. You can also request money, an option unavailable with different payment modes. Almost all UPI-enabled apps support these transactions.

Functioning

Traditional online procedures require you to enter the receiver’s account number, IFSC code, account type, bank name, etc., to add them as a new payee. The process takes nearly 12 hours, after which you can perform the transaction. Though it is convenient, it takes time and limits usage.

But UPI allows you to escape from this complex process. You can quickly transfer funds to others using the UPI ID as allotted by the bank to account holders. The registration process is simple and requires lesser details. It links directly to your account and does not require an additional wallet balance.

Registration process

To enjoy the cashless payment benefits, you require a smartphone and a Bank Account with a UPI member bank. The bank should include your mobile number in its records. Download any UPI-supporting app and create a Virtual ID for payments. You receive an OTP from the bank to confirm the details. After successful verification, create your Virtual Payment Address. You can make bill payments through them.

Is it safe?

It is a safe payment feature that verifies your mobile number during the initial registration. You enter a four-digit passcode for authenticating every transaction, thus increasing account security. You can also check merchant authenticity through the QR code feature and pay cashless in India.