UPI - A Revolution in India's Digital Economy
11 January, 2023
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 the need to enter banking credentials every time 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 feature of your chosen UPI mobile application. However, most digital apps are equipped with both options. Such interoperability, where your mobile acts as your bank account, is one of the most significant UPI payment benefits.
Benefits of UPI payment
Listed below are some of the benefits of UPI payments that enhance your digital payments experience.
Instant transactions
You can start making payments instantly after a quick registration process. UPI transactions are inherently instantaneous. They reflect in the recipient's account within seconds. Hence, UPI is a time-saving payment system that enables you to conduct small and high-value payment transactions. The permitted maximum fund transfer amount depends on the daily limit set by the UPI platform and the bank affiliated with the UPI platform.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 cash back 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 leverage the benefits of UPI payments in the best way. 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. You can use the HDFC Bank MobileBanking App as a non-bank user via the non-login section. 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 payments journey.
Download HDFC Bank Mobile Banking App for Android Users and for iOS Users.
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*Terms and conditions apply. The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances.
