UPI or Unified Payments Interface is a payment system launched by National Payments Corporation of India (NPCI) and regulated by the Reserve Bank of India that facilitates the instant fund transfer between two bank accounts on the mobile platform. This sums up the text book definition of UPI, but how UPI is pertinent in our everyday life?
It’s a transformational change that has triggered a paradigm shift in the payment sector while facilitating a more cashless economy and sculpting a newly modeled Digital India. UPI, being implemented in 30+ banks have enabled consumers to resolve banking issues.
So, what makes the UPI stand out from the rest?
Seamless invisible payments
Online money transfer involves a number of steps including waiting for OTPs, adding beneficiary while consuming a lot of time for payment completion.Â E-wallets and banking applications have their own downsides; as the wallets need to be preloaded first for money transfer. UPI powers instant authentication, verification, and transfer of money enabling real-time money transfer with seamless and convenient payment between bank accounts using smartphones.
Interoperability meets cohesion
If you have four different bank accounts, then youneed to download four different applications from the respective banks. UPI lets you access all yours accounts under one roof thereby eliminating the hustle of downloading different bank applications in case you have multiple bank accounts. With the latest version of UPI, one can transfer money as per his convenience using any phone.
Secure and Cost effective
You are always prone to risky transactions via card or other modes of payment. But UPI enables virtual mode of payment where authentication is carried out safely using mPins. Being a cost effective mode of payment, it leads to a better adoption rate of digital payments.
With a high percentage of mobile phone users, India ranks second in the world. UPI payment can prove to be a disruptive technology that can trigger mass adoption of digital payments. Simple authentication, issuance, national interoperability, and real- time money transfer, make the transaction experience seamless and secure. With the right push and strategy, UPI can become the nation’s wallet.