Everything you need to know about UPI and using India’s #1 payment interface
*This is in partnership with BQ Prime BrandStudio
UPI is one of the biggest success stories to emerge from India in recent years. In fact, UPI is so successful that other countries want to emulate India’s pioneering initiative and UPI is now poised to expand internationally.
If you haven’t started using UPI yet, you’re missing out on one of the most powerful and easiest payment systems in the world. If you send funds via NEFT or IMPS, read on to simplify your financial transactions, bill payments, online and offline shopping.
A few years ago, there were checks, demand drafts and wire transfers at bank branches. Lots of paper and it took days for funds to be transferred between bank accounts. As the Internet became a channel for commerce and banking, the first came IMPS/NEFT, which allowed users to transfer funds between bank accounts but required the recipient’s name, contact number, name of the bank, bank account number, branch IFSC code, etc. Memorizing and entering all this information made using IMPS/NEFT cumbersome. With over a billion mobile connections in India, a mobile phone number used to be a unique identifier that was easy to remember or access from a phone contact list. So, the innovators behind UPI have made it as easy as requiring a cell phone number or scanning a QR code to transfer money. But while the mobile number or QR code is an identifier, they are actually connected to a unique UPI identifier. Although you may think you are transferring to a mobile number, the UPI ID is the true virtual payment address (VPA) behind online money transactions/transfers.
Why do you need a UPI ID
To access easy-to-use UPI services that enable instant transfers and payments, each user must generate a UPI ID, which acts as a unique identifier for the user’s identity. The UPI identifier allows the banks processing the transaction to track the sender and receiver accounts.
A UPI ID is structured in an easy-to-remember format, similar to an email address. It can be something as simple as [email protected] (where “abcd” can be the user’s name, part of their email address, or mobile phone number, and “bank” is the name/initials/short name of the bank providing services to the UPI application, with a prefix or suffix added in some cases).
To transfer money through a UPI payment app such as Paytm, you do not need to enter the recipient’s UPI ID. As mentioned earlier, you can simply select the recipient’s contact from your phone book or enter the recipient’s mobile number to send money via UPI. Because the mobile number is connected to a UPI ID, your bank knows exactly where to transfer the money (bank, account number, etc.) and does it in a jiffy once you enter your secret PIN. A UPI ID is completely independent of your bank account number or any other personal data.
Creation of a UPI identifier
It is a very simple process to create a UPI ID, which will simplify your banking, bill payments, shopping and much more.
● First, download a UPI payment application, such as Paytm.
● Enter your mobile phone number, which is registered with your bank. You cannot use a number that is not registered with your bank.
● An SMS will be automatically sent from your mobile number to verify it with the bank.
● Next, you need to select the name of your bank from the list that will be presented to you. Your bank details will now be retrieved from the bank using your mobile number.
● If you are linking your bank for the first time, you will be asked to set up a UPI PIN. You will need your debit card details for this part.
● And that’s it: your bank account is linked via UPI, and you can make your first transfer, bill payment or pay for purchases offline or online. Considering the large number of use cases for the UPI, you will find that the installation makes your life easier. easier in so many arenas.
Transfer funds using a UPI ID
As with all things UPI, it’s a simple, user-friendly, and secure process. If you want to transfer funds between your own bank accounts or to someone else, UPI is undoubtedly one of the easiest methods to do so.
● Log in to your UPI payment application, such as Paytm, and click on the “UPI Send Money to Anyone” option.
● Select the recipient from your phone’s contact list or enter the recipient’s mobile number if the contact is not saved on your mobile device.
● If the receiver does not use the application you are using, you can ask it for its UPI identifier on another application and enter it.
● You can also click on the ‘Scan QR’ option and scan the recipient’s QR code.
● Next, select the bank account from which you wish to make the transfer and click on “Continue”. You can connect multiple bank accounts on a single app like Paytm, each with its own UPI ID.
● Enter the UPI PIN associated with the selected bank account.
● And that’s it, the amount will be immediately transferred from your bank account to the beneficiary’s bank account.