Unified Payment Interface (UPI) is a payment system which allows you to transfer and receive money without sharing any of your Bank Details. It allows you to do and receive payments online as well as offline without giving any credit card details, account number ifsc code etc.
It is the safest, easiest and hassle free method of transferring funds.
Cheapest Way to Transfer Money
In NEFT and IMPS the charges are high when compared to UPI, For NEFT charges a minimum of Rs 2.5 for a transfer, the IMPS charges a minimum Rs 5. But the UPI charges too less. It costs nearly less than 50 paise for a transaction through the UPI.
Free from Cash
After Demonetization, Every individual is searching for a method to cashless such mobile wallets online transfer etc. But when compared to all the methods it will be the safer and cheaper method to follow.
These days there are a lot of cyber criminals out there. So Most of the individuals prefer cash to avoid being a target to black hat hackers and cyber criminals. they don’t use online transaction and card payment because it asks for the bank account details.
But the UPI solves this problem. The payment through the UPI does not require any card credentials or bank account details. You have to only give the virtual payment address(VPA). The VPA seems like an email ID.
Instant Fund Transfer
UPI works 24/7. so you can make payments anytime. There is no restriction of holiday or timing issue. You can do payments even the Banks are closed.
One VPA Many Accounts
Now there is a new app in the market called BHIM app. After this UPI mobile app comes in you do not need multiple VPA for multiple bank account. A single VPA would serve for many bank accounts. You can link many bank accounts in this UPI-based app.
Easy Registration of Payee
The registration of new payee for the online fund transfer takes is a hassle. Few have time limit varying from half an hour to 24 hours. However, the UPI doesn’t have such waiting period. You can instantly transfer fund to a new payee.
Money Collection Service
In UPI there is a New service where you can request for money to a specific individual who is also using UPI service. Just you have to enter few details and request money and just by a simple acceptance by the sender you can receive money instantly.
Cheaper Alternative of POS Machine
UPI is best alternative for POS Machine normally merchants or vendors has to pay for the machine as well as a service charge of nearly 2.5% per transaction. But using UPI instead can make it easy and secure and cheap.
By using UPI you don’t need to give your card details and even the charges per transaction are also very low. So it’s better for Seller as well as Buyer. Most of the banks are providing UPI services through their apps and also few third party apps also came into the market such as Phonepe.