UPI - A Revolution in India's Digital Economy

Synopsis:

  • UPI enables easy payments by linking your bank account and mobile number, allowing instant fund transfers without entering banking credentials.
  • Transactions are completed quickly, with funds appearing in the recipient’s account within seconds, supporting both small and large payments.
  • UPI promotes a cashless economy, reducing the need for physical money and minimising the risk of loss.
  • Many UPI apps offer rewards and cashback on transactions, enhancing savings with direct deposits into your account.
  • UPI apps support linking multiple bank accounts, providing convenient access and the ability to choose or set a default account for transactions.

Overview:

Making payments on the go has become easier than ever before. Whether you wish to pay merchants for your online or retail store purchases, settle bills, or transfer funds, you can conduct financial transactions with a few clicks and move money between accounts. The emergence of the Unified Payments Interface (UPI) has played a significant role in streamlining fund transfers. The National Payments Corporation of India (NPCI) introduced UPI payments to make online transactions hassle-free. The digital payment ecosystem provides a simple solution for varied types of payments. Continue reading to learn about the benefits of UPI.

How does UPI work?

UPI payments come under the IMPS infrastructure without needing to enter banking credentials whenever you wish to send money. All you need to do is link your bank account and mobile number registered with the bank to create a Virtual Payment Address or UPI ID. Your VPA allows other parties to recognise your payment network and details, as you can recognise theirs while conducting fund transfers.

Other ways to make payments through UPI include scanning the recipient's QR code and inputting the recipient's mobile number. The payment methods you can utilise depend on the features of your chosen UPI mobile application. However, most digital apps offer both options, enhancing interoperability where your mobile device effectively serves as your bank account. This seamless integration is one of the standout benefits of UPI payments.

Benefits of UPI payment

Listed below are some of the benefits of UPI payments that enhance your digital payments experience.

Instant transactions

After a quick registration, you can begin making payments instantly. UPI transactions are inherently rapid, with funds reflecting in the recipient's account within seconds. This time-efficient payment system supports both small and high-value transactions. The maximum transfer amount is determined by the daily limits set by the UPI platform and your affiliated bank.

Promotes a cashless economy

UPI is a revolution in digital payments that facilitates inter-bank, peer-to-peer, and merchant transfers. It allows you to conduct various financial transactions that occur daily. Since the transactions are handled digitally, you need not bother with having cash. The cashless facility further prevents the chances of losing physical money.

Rewards and cashback

Since the popularity of UPI payments, many UPI apps have surfaced in the market. Even mobile banking apps have become UPI-enabled. In a bid to capture your attention, UPI platforms offer rewards and cashback on almost all types of transactions, thus enhancing your savings. While you can redeem discounts on shopping, the UPI platform transfers the cashback amount into your account directly and instantly after the transaction.

Privacy protection

Most digital payment channels are safe, but they also run the risk of data theft. If you are not careful, you may expose your bank credentials while entering them into the payment gateway. UPI has created a digital payments revolution by eliminating this issue. You merely need to input your bank account details once and set up your UPI PIN for secure transactions.

Transactions through multiple accounts

Most UPI apps enable you to link multiple bank accounts in one place. The same goes for bank-specific payment apps, depending on their terms. This benefit of UPI facilitates convenient access to all your accounts. While you can choose your preferred bank account to make the payments, you must set one account as default for receiving funds.

Register for UPI with HDFC Bank's MobileBanking app

You need a robust app that lets you maximise the benefits of UPI payments. HDFC Bank assures this with its MobileBanking App. The app enables instant, secure, and free mobile payments 24*7 from anywhere in India. You need not necessarily have an HDFC Bank Account to access the UPI services. Through the non-login section, you can use the HDFC Bank MobileBanking App as a non-bank user.

Besides the convenience of UPI, you also enjoy features like biometric unlocking of the HDFC Bank mobile account, sharing transaction receipts, EVA ChatBot support, account updates and statements, etc. Click here to explore other beneficial features and start your hassle-free payment journey.

Download HDFC Bank Mobile Banking App for Android Users and for iOS Users.

Visit here to learn more about Digital Wallets.