What is UPI Payment System ?
Intro : Unified Payments Interface (UPI) is an instant real-time payment system developed by National Payments Corporation of India and It is regulated by the Reserve Bank of India. UPI was officially launched in 2016 for public use. It allows user to send or receive funds instantly using by mobile devices and the transaction can be Inter-bank between peer-to-peer and person-to-merchant and it runs as an open source application programming interface on top of Immediate Payment Service. Since Year 2016 – To- 2022 Its Complete Market Share: 1,699.71 USD (In Cr.) as of 12,594,818.73 Transaction Volume (in Mn) With Number of banks 382 .
Internationalization: It is already providing few services across the border and now it announced From 30 April 2023, international mobile numbers from Singapore, Australia, Canada, Hong Kong, Oman, Qatar, USA, Saudi Arabia, UAE, and UK will be able to access UPI transaction facility. It will be available through non-resident external (NRE) and non-resident ordinary (NRO) accounts.
How do you use it ?
To use it, User should have first to create a UPI ID on a UPI App using by a Mobile Number which should be registered to the Bank Account and should be inserted in the Mobile Device (Smartphone or Tablet.This is basically what UPI does and it works very similarly to ATM cards or net banking services you might already be familiar with. UPI works on an open platform which means anyone who has a mobile phone number can participate and make payments.
How does UPI work ?
The UPI payment system works like a regular credit or debit card where the sender’s bank account details are transferred to the receiver’s bank account number automatically after receiving the request from the sender's bank account number. The sender doesn’t need to enter any details such as card numbers and expiry date into their mobile phones anymore because this feature is already included in the application itself.
Why Should You Learn About UPI Payment System ?
It is important to know the UPI payment system, as it is a very common method of payment in India. If you are going to use UPI payment system, then you must know how it works and what it can do for you.
There are many advantages of using UPI payment system. These include:
1) It is faster, simple and easy to use, which makes it more user-friendly than other modes of payments like credit cards and debit cards or ATMs. The amount being transferred can be unlimited.
2) There are no charges like charges or fees while using UPI; The transfer is free as there are no fees involved in making a transfer using UPI. You can get instant confirmation of your transaction receipt.
3) There is no need for customers to carry their cash or cards around with them. This can be a major inconvenience for customers who have to travel long distances, especially when they have to travel to the bank or ATM. UPI payments are instant and can be made from anywhere in the country, even if customers are on the road. In fact, it takes just a few seconds for a transaction to take place and for money to be transferred from one bank account to another. The same thing happens when customers make purchases from other places like grocery stores or shopping malls.
4) It is secure because there are no middlemen involved in this type of transaction which means that there is no way that your financial information can get into the wrong hands if you lose your mobile phone or wallet containing your card details.
5) The payment system works on a unique identification number, which is called UPI address. This number can be used for making payments among two or more users. The UPI payment system has been around for quite some time and is used by most banks in India.
6) It’s an easy and convenient way of paying for your daily needs, especially when you need to pay someone on the go or if you want to make online purchases from e-commerce sites like Flipkart or Amazon. and you don’t have to wait for cash at all.
Conclusion :
Using UPI Payment System is the best way to pay bills and make online purchases. It is an easy way to send money to your friend or relative without worrying about the security of your money. People who use UPI payment system can easily transfer money from one account to another without any hassle. It will also help you save time in transferring money between accounts as well.
Good article ! Thank you for sharing with us !
Thanks for the valuable comment ! ;)
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