The payment flexibility billions of people enjoy worldwide did not exist even in the wildest imaginations more than a decade ago. Thanks to the growing technology, more and more people are becoming aware of the cashless modes of financial transactions. This has given rise to several payment platforms such as a bill payment app, which boast about monetary transactions at the comfort of the user’s time and location. Different methods of online transactions include NEFT (National Electronic Funds Transfer), IMPS (Immediate Payment Service), UPI (Unified Payment Interface), etc.
UPI payment is considered the most widely used payment system, especially in India, for more than one reason. We will cover that later in this article. First, we need to understand the mechanism of payment in UPI. It is a mobile-based payment system that accumulates different banking features and multiple bank accounts, enabling fund routing and merchant payments.
Why should we choose UPI payment online over other modes of payment?
- Feasible for all small & big vendors: Although credit & debit cards were introduced much before the advent of UPI, they weren’t accepted by the shopkeepers and retailers the way they have received UPI. They don’t have to bear high prices for processing the funds’ transfer like they used to with the card swiping method, which was the perk provided only by some elite merchants. Nowadays UPI can be used in simplest of tasks like electricity bill payment.
- Security of the bank details: Being skeptical of sharing account details on payment platforms is understandable in this age of extensive cyber theft and fraud. Through the safe mode of payment in UPI, one can easily manage funds transactions without disclosing the account details. The UPI or virtual ID is used for all the payments that work, like our account number or card number. While in the IMPS or NEFT mode, bank details need to be provided to receive payments, although the Experian credit score serves as an essential guard against any kind of fraud or identity theft.
- Speedy transfers: Transferring funds to clients or loved ones a thousand miles away within seconds makes UPI the most excellent platform for sending and receiving money. It is the only payment method activated immediately after the registration, unlike the IMPS and the NEFT payment systems, in which a certain cooling period is required after the registration process to initiate any transaction.
- Syncing of multiple bank accounts: People tend to have multiple accounts because of varying benefits and other business-related purposes. It can be arduous to handle so many transactions from different banking apps. So, the UPI is the ultimate solution for managing all the transactions from multiple bank accounts through a single user interface.
- No more struggle for the remittance: Asking for payment for the product or services supplied to the clients always puts one in a difficult spot, but no more with the “Request Money” feature provided by the UPI. The reminder message for the pending payment is sent to the clients directly from the bank. And they only need to approve that, and once it’s done, the payment is remitted to the biller’s accounts.
The UPI payment app has changed the way businesses are functioning now. It is something that has impacted various sections of society.