The change that the UPI Payment app has brought with its introduction is enormous and can be felt in the way it has changed the digital landscape in our country, enabling each person to switch to online modes of payment. It has made life easy by allowing you to make payments from the comfort of your house.
The hassle of handling cash has been reduced because of UPI, and the plethora of advantages it has brought are more than the visible ones, allowing us to shift significantly to a cashless digital economy.
What is UPI payment?
Unified Payments Interface (UPI) is a system that enables you to add multiple bank accounts into a single mobile application (of any participating bank), interlinking several banking features, seamless fund routing & merchant payments under one umbrella.
UPI Payment also caters to the “Peer to Peer” collection request, which can be pre-scheduled and paid as required and convenient. You can make immediate money transfers through mobile devices round the clock, 24*7 and 365 days.
What are the advantages of UPI over NEFT and IMPS?
● Immediate transfers
The transfers through UPI are instant and immediate and can be made 24*7, whereas NEFT transfers take around 12 hours to process and complete. Although the transfers through IMPS are instant, there is a maximum limit of Rs.2 lakhs.
● Transfer charges
There are no charges for up to twenty transactions a month in the case of UPI, whereas the charges on transfers vary from bank to bank in the case of NEFT and IMPS. This adds extra cost for services like NEFT and IMPS, making UPI more attractive.
● Bank account
UPI does not necessarily require a bank account; you can use e-wallets instead, but if you want to make transfers through NEFT and IMPS, having a bank account is necessary. This makes UPI more accessible as having a bank account is not limited.
● Pay later
UPI has a special feature of UPI Pay Later that allows you to pre-schedule your payments for a later date; that is, you can buy something without having to pay for it on the spot by scheduling a later date. This feature is not available in the case of NEFT and IMPS.
● Transfer type
Only payment transfers can be made using NEFT, whereas, with UPI’s help, payment and collection of the transfer are possible. This again gives UPI an edge over other payment methods.
Why does UPI stand out in Digital Payments?
● Expansion and accessibility
The expansion of UPI has been a game changer in the financial domain as it has enabled even a street vendor to use the online mode of payment. It is also very easily accessible to all users as it can be downloaded from the Play Store app, and after two-point authentication, you are good to go.
● Intact privacy
UPI’s most crucial advantage is its protection, as it requires minimal personal data directly from the bank account. It has eliminated the risk of default, thus making it reliable and trusted among users while making a UPI payment.
● Easy and real-time transactions
It is an easy way to carry out transactions. It provides real-time transfers that only take a few seconds to make a payment. It has only a one-time linking process, making it short and proficient.
Which is the best app to make UPI payments?
I have been a regular user of the Bajaj Finserv app for the past few months, and it has become my most used app. It is extremely easy to operate, allows various transactions, and accommodates business transactions very smoothly.
It also provides the facility of UPI Pay Later, whereby you can buy something and pay for it later, bringing a variety of services under one hood.
Conclusion
UPI has vast potential to gain even more traction in the future, allowing us to explore its full benefits. It has surpassed other online payment methods as its advantages outweigh the features of NEFT and IMPS, thus explaining its sudden expansion and broad utility.
