Ever been in a situation where you have to send money or split a bill, and it’s taking time when done traditionally, and you have to enter all account details? That’s where UPI payments come to the rescue. With digital payments made using UPI, it has become fast and convenient for users right from anywhere and anytime. There’s no doubt that UPI transaction payments will rise, projected to account for 91% of retail digital payments.
Let’s explore how UPI has helped users make transactions easy, how to use it, security tips and more.
What is UPI Payment?
UPI (Unified Payments Interface) is a digital payment system where users link multiple bank accounts to the platform and conveniently make transactions in seconds using their smartphones. With a UPI ID, QR code, or contact number, users can make or receive payments instantly from anywhere without needing to add bank details.
Benefits of Peer-to-Peer Transactions Using UPI
UPI payment has undoubtedly become the first choice of users as it offers various benefits. Here are a few of them:
- Speedy Transfers: UPI processes payments in seconds, as it does not require bank details every time a transaction is made. Only the UPI ID, contact number, or QR code is needed to initiate the transfer.
- Availability: Users can make transactions anytime and from anywhere, including holidays.
- Minimal Transaction Fees: Certain applications charge a platform fee. UPI transactions are either free or charge minimal fees.
- Linked to Bank Accounts: Users can link multiple bank accounts to their UPI app.
- Security: UPI applications enable biometric verification or two-factor authentication to make transactions safe and secure.
What is the Difference Between UPI and Other Payment Methods?
While wallets, UPI, debit and credit cards are the most popular payment methods, here’s how UPI is different from others:
| Feature | UPI | E-Wallets | Credit/Debit Cards |
| Speed | Instant | Fast but requires funds in wallets | Fast, involves authentication steps |
| Security | High | Moderate | Moderate |
| Availability | Available anytime and anywhere, including holidays | Available anytime, depending on wallet balance | Available anytime, but it depends on bank/card availability |
| Payment Method | UPI ID, mobile number or QR Code | Wallet balance | Card details (number, CVV and OTP) |
| Fees | Minimal to no fees | May apply transaction fees | May apply interest or transaction fees |
How to Make Peer-to-Peer Transactions with UPI?
Users can make peer-to-peer (P2P) transactions with UPI by following some simple steps below:
- Download and install a reliable UPI app like Bajaj Finserv on your smartphone.
- Register with contact details that are linked to your bank account.
- Set up a unique UPI ID and PIN for transaction authentication.
- To make transactions, enter the recipient’s UPI ID and the amount to be transferred and confirm the payment. Make sure to recheck everything.
- The transaction will be instantly from your bank account to the recipient’s.
Future of UPI in P2P Transfers
The technology advancements for UPI payments look quite promising, and they will definitely enhance user experience in the future. Indians have started to make UPI their prime payment method, which will continue to grow with the introduction of new and innovative features like cross-border transactions.
The technology’s primary purpose is to make this payment method a global solution for fast and convenient transactions. As India moves towards a cashless economy, UPI will always remain at the forefront of P2P and business transactions.
Security Tips to Consider When Using UPI
While UPI applications offer security with end-to-end encryption and two-factor authentication, it is essential for users to follow some security tips to keep their transactions safe and secure:
- Use a unique and strong UPI PIN and avoid numbers like birth dates. Also, don’t share the same with anyone.
- Beware of scams and fraudulent messages. If there’s anything you find suspicious, then report it immediately.
- Double-check the recipient’s information, such as ID, contact number, and amount.
- Make sure to receive all the information in the mail and messages.
- Keep the UPI app updated and enjoy the latest security features.
- Enable biometric verification and two-factor authentication to add an extra layer of security.
Bottom Line
With its speedy transactions, security, and convenience, UPI has undoubtedly revolutionised digital payment in India. Using the right app will help users make secure transactions and avail themselves of benefits, rewards, and cashback. If UPI continues to grow at this speed, it will be an integral part of our lives and the only platform for future payments. Don’t forget to learn about security tips and use a reliable application.