UPI Full Form

More on UPI

UPI is Referred to as the Unified Payment Interface. 

What is UPI?

Unified Payments Interface (UPI) is a framework that puts numerous bank accounts into a single mobile application (of any participating bank), consolidating banking features, consistent fund transfer and merchant payments through one application. It also serves the peer-to-peer transfer request which can be planned and paid according to necessity and convenience.

Unique Features of UPI:

• It allows immediate money transactions through mobile device 24*7 for 365 days.

• One needs a single mobile application for accessing numerous bank accounts.

• Single click authentication allows seamless transaction

• Customers need not enter account no. and other details as a virtual payment address is used in UPI transactions.

• Transactions can be shared immediately.

• It is an alternative for cash transactions and customers need not run to ATMs for cash.

• Merchants can be paid with the use of a single UPI app.

• Utility bills, counter payments and barcode-based payments all can be done through a single UPI application accessing numerous bank accounts at a single time.

• In case of payment failure concerns can be raised within the app only.

UPI Stakeholders:

A transaction through UPI involves the following parties:

• Payer PSP(payment system player)

• Payee PSP

• Remitter Bank

• Beneficiary Bank

• National payment corporation of India

• Bank account holder

• Merchants

UPI Benefits to the Ecosystem:

Benefits to Banks:

• Single click two-step authentication process.

• Universal application for transactions.

• It is safe, secure and innovative.

• Unique identifier for payments.

• Seamless merchant transactions

Benefits to Customers:

• 24*7 availability.

• Single mobile application for accessing numerous bank accounts.

• No credential sharing is required as UPI uses virtual addresses.

• Single-click application

• Customers can raise a concern through inbuilt transaction failure features.

Benefits to Merchants:

• Seamless fund collection from customers through single virtual address.

• No need for storing customers identity ie. virtual addresses.

• Access to customers not having credit or debit cards.

• Suitable for e-commerce and m-commerce businesses.

• Resolves the issue of having to round off payments as an exact amount can be paid through digital mode.

• In-app feature of payments to vendors and customers.

Registration in UPI Application:

• Customer downloads UPI application from any bank’s website

• User creates his/her profile by entering details like bank account, password, UPI pin etc.

• User adds/links/manages his/her bank account through UPI app.

Performing UPI Transactions:

• PUSH transaction means sending money using a virtual address.

• User logins to UPI app

• Selects option for payments

• The user enters the beneficiary virtual address and amount to send.

• The user enters a PIN to allow the transaction.

• PULL transaction means requesting money.

• Users log in to the UPI application.

• He/she selects options for collecting money.

• The user enters payers virtual id, amount and account to be credited.

• Payer gets a notification for requesting money.

• The payer clicks on accept or decline after reviewing the request.

• After a successful transaction, both the user and payer get confirmation from the bank.

Traits of UPI 

• Using UPI instead of traditional methods such as banks or debit/credit cards facilitates easy transactions. 

• Not only the monetary transactions, but you can also pay your mobile bills, restaurant bills, shopping bills, and many more things with the UPI. 

• Apart from the banks, many e-commerce sites have also made the provision of UPI available to the customers for the easy process. 

• It is not at all time-consuming and makes the transactions instantly. 

• By using the UPI, no risk is involved as you don’t need to share any of your account details. 

• There can never be any other great alternative for cash transactions other than this. 

• In case of payment failure, you can raise an issue through the UPI app only. 

• Unlike banks that have fixed hours, you can use UPI 24x7 without any disturbance. 

Ways of making Transactions from UPI 

You can transfer money, make bill payments, or request the money through the UPI application. Let us learn how to make the same one by one. 

Follow the below-mentioned steps to transfer the money. 

• Open the app on your smartphone. 

• Log in to the app using your pin. 

• Select the send money option to proceed with the same.

• Enter the receiver details and the amount you wish to transfer. 

• Click on confirm payment to transfer the money in an instant. 

You can also request money from someone using the UPI app. Here are the steps to do the same. 

• Log in to the app using your UPI pin. 

• Select the request money option and enter the payee’s details. 

• By doing so, a payment request will be made to the person. 

• Upon accepting the request made by you, you’ll receive money in an instant. 

In case you find yourself stuck with making bill payments, then also you can make use of the UPI. Follow the steps below for making the bill. 

• In the case of bills, you have to select the pay bill option out of all other options. 

• Adding a biller is a prerequisite to doing here. 

• Enter the bill amount you intend to pay using your UPI pin. 

• In an instant, your entire payment will be credited to the biller. 

• Be it mobile bill, electricity bill, broadband, gas, or any other bill, everything is possible with a mere click. 

Final Call

Without any doubt, the UPI app has made payments a lot easier than before. It would not be wrong to say that with such an app, we are slowly moving towards the cashless economy and digitalization which will help us to accomplish our goals.