The internet has provided a lot of pragmatism to the world, and with it, humans can access nearly everything. Quite naturally, it has also changed the way we pay for something. The traditional payment methods like cash and cheque are going into the past eventually. The current model of payment is just through a click. As soon as you create a dedicated ID on a UPI or Unified Payments Interface app, you can pay with just a click. There is no hassle in mentioning the account details every time. Moreover, apps provide UPI payment cashback and rewards and hence, are popular among users.
NPCI, or National Payments Corporation of India, developed UPI in 2016 and ever since, it has grown significantly. With the COVID-19 pandemic hitting humankind hard, cash payments and physical modes of payment were discontinued to a colossal level. UPI gained immense popularity right then. India is currently the world’s largest market facilitating online payment, with nearly 30 billion annual transactions. UPI has helped India to a stage whereby the country stands a transaction volume worth almost $350 billion.
The reason behind the popularity of UPI is its seamless user experience and easy-to-use interface. Moreover, UPI apps offer many other features like rewards, cashback, lucky draw, payment bonuses, etc.
Let us know what UPI ID is and its features and benefits in detail.
What is UPI ID?
UPI ID is a unique ID that identifies a particular user and enables them to transfer money through VPA or Virtual Payment Address. Following the traditional method, you need all the details, such as account number, IFSC code, and other information, to transfer money. On the flip side, when you use UPI ID, you can quickly transfer the money through VPA. Virtual Payment Address identifies the receiver and secures the overall transaction.
This UPI ID is directly linked to your bank account. Also, you can transfer the money through the receiver’s phone number.
Steps to Create a UPI ID
There are many UPI apps available in the market. Irrespective of the app, the steps mentioned below hold common to all. Follow these steps to create your unique UPI ID.
- Download the required UPI app from the app store. You will need to set an unlocking pin first to secure the whole UPI system on your phone.
- Next up, you need to register your mobile number. Enter the mobile number that is registered with your bank. The app will verify this process through an OTP or One Time Password. Enter the password, and your mobile number will be registered.
- After the phone number is registered, you will be asked to select your bank. Select the bank and after it is linked, add all the details like account number, IFSC code, etc.
- After the processes mentioned above are complete, a unique UPI ID will be generated, and you have created a new UPI ID or VPA.
Benefits of UPI ID
Here are some of the common features of UPI ID that are quite beneficial for its users.
- You can transact with a single click.
- 24×7 and 365 days service. As long as you have a steady internet connection, you can make payments.
- All the transactions are free.
- You can manage multiple bank accounts through the same UPI-enabled application.
- Some of the best payment apps that are UPI ID enabled include Google Pay, PayTM, PhonePe, Amazon Pay, etc.
- If you face any issues regarding transactions, you can clear them through the app itself.
- Since all these apps are under the direct supervision of RBI (Reserve Bank of India) and NPCI, the security measures are immense.
- Extremely safe transactions through two-factor authentication and merchant authentication methods.
- You can transfer money just through UPI ID or dedicated QR codes. No need of entering the account number and other details every time.
UPI platforms have registered themselves as the undisputed masters of cashless transactions over net banking, mobile banking or credit and debit cards. As of early 2022, there are over 150 million monthly active users in India. Hence the demand is never-ending, and many companies have taken up the task of developing new UPI apps and serving the population and its demand.