You might have heard about UPI aka Unified Payments Interface many times before landing on this page but have you ever wondered, what it is exactly & how does it work? Well, this article is especially for you.
What is Unified Payments Interface [UPI]?
Unified Payment Interface (UPI) is a platform that combines banking services and various features. Unified Payments Interface is a real-time payment method which is developed by the National Payments Corporation of India (NPCI). This program is governed by the Reserve Bank of India.
In simple words, UPI is used to transfer money from one bank account to another bank account using mobile platforms. UPI is designed over the IMPS (Immediate Payment Service) platform which allows instant interbank to electronically transfer the funds through mobile platforms.
How does UPI Payment work?
UPI has made the fund transfer easier, that you don’t have to remember the receiver’s account number or bank name. What you need is just their UPI registered mobile number.
You can register a new UPI ID on your Android/iOS smartphone by just downloading any UPI service-supported apps like Google Pay, PhonePe, BHIM, etc. Enter your mobile number in the App & wait for the app to verify your bank account associated with your mobile number.
After the verification process, your UPI ID will be registered in the App and then you can use this ID for bank services and also fund transfer can be done through a mobile number in your contact list.
Also, make sure that the receiver’s mobile number is registered with UPI.
The UPI IDs begin with your mobile number or by your name, for example, yourname@yblbank or mobilenumber@yblbank.
Features of Unified Payments Interface [UPI]
- It allows you to access a different bank account in one single Application
- UPI allows instant and real-time money transfers between banks all the time 24/7 and each day of a year
- Sending and receiving is easier with UPI, allowing the user to send and receive funds through a virtual payment address
- Scan and pay is another feature of UPI that saves time, this feature permits users to scan a QR code that is generated in App for payments which save a lot of time
Are UPI Transactions Secure?
UPI transactions are highly secure and encrypted data, so it’s not easy to intrude in the transaction. NPCI handles about Eight Thousand Crores UPI transactions every day and makes sure that every transaction is secure.
In addition to this, UPI uses a Two-factor verification method for a transaction that requires a PIN (Personal Identification Number) same as OTP.
We hope now you understood, what is Unified Payments Interface & how does it work on smartphones today.