How is UPI (Unified Payments InterfaceIs) Useful?

How is UPI (Unified Payments InterfaceIs) Useful?

Unified Payments Interface (UPI) is a revolutionary payment system in India that has transformed the way people transfer money. Launched in 2016, UPI is a mobile-based platform that enables instant bank-to-bank transactions in real time. In this blog post, we will take a closer look at UPI, its benefits, and how to use it.

What is UPI?

UPI is a payment system developed by the National Payments Corporation of India (NPCI) that enables instant fund transfers between bank accounts using a mobile device. UPI eliminates the need for bank account details and makes transactions as simple as sending a message.

Benefits of UPI

UPI has become popular among consumers and merchants alike for several reasons, including:

Convenience – UPI is very easy to use and can be used through a mobile device. Users can download the UPI app and link their bank account to start making transactions. Once the account is linked, users can transfer funds, make bill payments, and even pay for purchases at shops and online.

Immediate transfers – UPI offers immediate transfer of funds, which means that the recipient receives the payment in real-time. This is particularly beneficial for urgent transactions, such as paying for groceries or transferring money to a friend in need.

Security – UPI uses multi-factor authentication to ensure that transactions are secure. Each transaction requires a UPI PIN, and some banks also offer additional security features, such as biometric authentication. This makes UPI a safe and secure way to transfer money.

Low cost – UPI is a low-cost method of payment, as there are no fees charged for using the platform. As a result, it is a cost-effective option for both individuals and businesses.

How to use UPI?

Using UPI is very easy, and it can be done in a few simple steps:

  • Download the UPI app from the Google Play Store or Apple App Store.
  • Register your mobile number with the app.
  • Set up your UPI PIN, which will be required for every transaction.
  • Register your bank account with the UPI app.
  • Once the account is linked, you can start making transactions by entering the recipient’s mobile number or UPI ID.
  • Enter the amount you want to transfer and confirm the transaction by entering your UPI PIN.

The recipient will receive the payment in real-time.

In conclusion, UPI is a convenient, secure, and low-cost method of payment that has transformed the way people transfer money in India. By using UPI, users can enjoy the benefits of immediate transfers, cashless transactions, and enhanced security, while also avoiding the need to carry cash. If you haven’t tried UPI yet, it’s worth giving it a try!

Is UPI A Digital Payment Mode?

Is UPI A Digital Payment Mode?

The Unified Payments Interface (UPI) has emerged as a popular payment mode for both individuals and businesses with the rise of digital payments in India. UPI is a digital payment system that allows users to instantly transfer money from one bank account to another via a mobile app. In this post, we will look at what UPI is, how it works, and its benefits and drawbacks.

What exactly is UPI?

The National Payments Corporation of India (NPCI) created UPI as a payment system to facilitate interbank transactions. It was introduced in 2016 and has since grown in popularity due to its ease of use and instant transfer capabilities. UPI is an open platform that connects and allows different banks and payment service providers to offer their services to users.

How does UPI function?

Users must have a bank account and a UPI-enabled mobile app to use UPI. They can connect their bank account to the app and create a Virtual Payment Address (VPA), which serves as an account identifier. The VPA, like an email address, can be shared with anyone who wishes to send money.

To make a UPI payment, users must enter the recipient’s VPA or bank account number and IFSC code. They can then enter the amount to be transferred and confirm the transaction with their UPI PIN, which is a four or six-digit code that the user creates. The funds are instantly transferred from the sender’s account to the recipient’s account.

The Benefits of UPI

UPI enables instant fund transfers, which is especially useful for businesses that need to make quick payments.

No need for cash: UPI eliminates the need for inconvenient and time-consuming cash transactions.
UPI is user-friendly and simple to use, making it accessible to a wide range of users, including those who are not technologically savvy.

Secure: UPI employs two-factor authentication and encryption to ensure transaction security, lowering the risk of fraud and unauthorized access.

Wide acceptance: UPI is accepted by a large number of merchants, making it a convenient payment mode for users.

UPI’s disadvantages

UPI is currently available only in India and cannot be used for international transactions.

Internet connectivity: To function, UPI requires an internet connection, which can be a problem in areas with poor connectivity.

Technical issues: Like any other digital payment method, UPI can be affected by technical glitches or server downtime, resulting in transaction delays.

Finally, UPI is a digital payment method that has gained widespread acceptance in India due to its simplicity and instant transfer capabilities. While it has some limitations, such as being available only in India and relying on internet connectivity, UPI offers many benefits that make it a convenient payment method for both individuals and businesses.

UPI 2.0

UPI 2.0


When it comes to online payments, UPI plays a vital role as it has become the most convenient mode of payment and is adopted by the majority of businesses. Post-demonetization, UPI-based payments have soared in India. According to the report of Inc 42, UPI has seen a massive payment processing hike of about 245 million in the span of 2 years.

UPI has also seen a growth of 78% in the number of banks integrating with it. UPI became the most popular and the most preferred mode of payment because of the following reasons:

  1. Money can be transferred 24/7.
  2. The UPI id acts as an email address for your money which can be shared to receive a payment instead of bank details.
  3. Increase in security.


NPCI is the organization that handles all the retail payments in a country. UPI is managed by NPCI. An updated version of UPI which is UPI 2.0 was launched by NPCI in August 2018 with the following new features:

  1. Link Overdraft Account: With the existing support for linking savings and current accounts, now you can link your overdraft account to UPI. Customers can make transactions easily and can avail themselves of all the benefits of an overdraft account. UPI 2.0 has become an additional digital channel for accessing your overdraft account.
  2. One-Time Mandate: UPI mandate can be used in the scenario where money can be transferred later with the commitment at present. Onetime block functionality for transactions is used for creating UPI mandates. Customers can authorize the transaction earlier and can make the payment later. It works for both customers as well as for merchants. Mandates can be created and executed instantly. On the date of the actual purchase, the amount will be automatically deducted and received by the merchant/individual user. 
  3. Invoice in the box: This feature is designed so that customers can check the invoice before making the payment. It will help the customers to view and verify the credentials and also check if it has come from the right merchant. Customers can pay once they have finished validating the details. 
  4. Signed Intent/QR code: This feature allows the customers to check the authenticity of the merchant by scanning the QR code. It notifies the customer with the information about the merchant stating whether he is a verified UPI merchant or not. Customers will be notified in case the merchant is not verified by the UPI merchant.

With its new features on offer, UPI 2.0 has a lot on offer. From a consumer’s point, UPI can be used to book taxis, pay for medicines at pharmacies, pay for groceries, or pay for investments a lot more. The increased popularity of UPI will reduce the market for wallets.

Digital Payment Guru provides payment gateway integration services of top payment gateways like PayPal, Paytm, PayU, Instamojo & Atom at the best market rates. If you are confused about which payment gateway to choose from, we can help you choose the best payment gateway for your business by analyzing your business requirements.



Recurring Payment Via UPI Or Credit Cards?


Does your business require a collection of online payments for products and services at regular intervals?
Payment gateway providers make it easier for customers with Credit card options. With UPI coming into a lead, it would be a great contender. Which one should you go for recurring payments? Let us find out.

What are Recurring Payments?

In a recurring payment model, the service providers deduct the purchase amount from the buyer’s account at regular intervals which are set up automatically.
There are multiple recurring payment businesses, some use an invoice method wherein a payment is automatically deducted against an invoice and others use a Subscription Model business wherein you only pay as you use the services or product.

How does Recurring Payment Work?

To enable recurring payment, a customer must save the card and grant permission for the recurring charge. Stored payment data can then be used used to automatically process payments for repeat services or subscription model business. Payment gateway service providers can automate all types of business billing needs. Some have payments based on invoice cycle others initiate and manage recurring payments. Solutions are different for both types and thus it is necessary to identify your billing needs before getting a recurring service.

What is UPI?

Unified Payment Interface (UPI) is a single platform that provides different banking services and features. If your bank is UPI enabled, you can create a UPI ID that can be used for making transactions. A transaction can be made using an Aadhaar number, Mobile Number, and Virtual Payment Address (UPI ID). UPI allows the user to transfer and receive money from one bank account to another by using a smartphone. It enables the transfer directly from a bank account to the merchant and also handles basic banking activities. UPI is a revolution that can be an alternative to e-wallets, in other words, UPI is the best thing in the online money market.
According to NPCI, in March Rs.1.33 Lakh Crore of transactions is made via UPI which is a 24% increase from February 2019.
In 2018, UPI launched its second advanced version UPI 2.0 with more features but NPCI did not add recurring payments to support in it. This feature could be coming in UPI 3.0.
The feature can enable customers to issue a one-time mandate for recurring payments for services from the merchants. The best example can be automatic payments of monthly bills and subscription-based services. RBI refuses to release these features for UPI for fear of its misuse.

UPI vs Credit Card for recurring payments?


Business prefers to set up recurring payments against Credit/debit cards. Some global businesses like iTunes set it up on debit cards with One-factor-Authorization.

Unified Payment Interface:

  • Recurring payment support for UPI is coming soon.
  • A customer has full control over authorization for the requested payment.
  • In the case of refunds, the merchant and buyer communicate directly.
  • UPI is will be available with the banks that do not provide recurring payments.
  • A recurring payment can be availed by anyone that has UPI.

Credit Card:

  • Recurring payments are available on credit cards.
  • Money is debited Automatically without the customer’s involvement.
  • In the case of refunds merchant also has to deal with the customer’s bank.
  • Recurring payments can be availed by those having a Credit card.
  • A recurring payment cannot be availed with banks that do not allow it on a card.


What, how, why - UPI

WHAT? HOW? & WHY? about UPI- Unified Payment Interface

What is UPI?

Unified Payment Interface (UPI) is a single platform that provides different banking services and features. If your bank is UPI enabled, you can create a UPI ID that can be used for making transactions. A transaction can be made using an Aadhaar number, Mobile number, and Virtual Payment Address (UPI ID). UPI allows the user to transfer and receive money from one bank account to another by using a smartphone. It enables the transfer directly from a bank account to the merchant and also handles basic banking activities. UPI is a revolution that can be an alternative to e-wallets, in other words, UPI is the best thing in the online money market. 

UPI is a creation of NPCI & RBI and is an initiative by P.M Narendra Modi.

How to Use UPI?

How to use UPI?

For using UPI service on your mobile phone you just need to set up UPI ID which is linked to your bank account. There are many mobile applications that provide UPI facility, and UPI ID can be set up from these applications. UPI IDs have the same format for all UPI-enabled applications. The format is “XXXXXXXXXX@upi”,  wherein XXXXXXXXX is the number followed by @ and then followed by the application from which you’ve built your UPI ID. So if you build a UPI ID from Paytm it will be, “XXXXXXXXXXX@paytm”. It is also possible to create your own unique UPI ID.

Once you’re done with creating UPI ID the further procedure remains the same for all the mobile applications which are providing your mobile number. After providing your number an SMS is sent for fetching your bank account details. Make sure the mobile number you enter is linked with the bank account for which you seek UPI service.

Your UPI-enabled bank account will be displayed on the screen, just confirm the band details and then you can set up a 4-digit PIN, this pin will remain the same for your bank account across all the UPI-enabled applications.

UPI-enabled Banks:

UPI is the most convenient feature, many banks in India have integrated UPI payments facility into their platform. UPI facility is available through its own app. It can be implemented into their own banking app or a separate app.

There are many UPI-enabled apps, the ones listed below are the most popular,

  • State Bank of India- SBI Pay
  • Kotak Mahindra Bank- KOTAK Pay
  • Syndicate Bank- Synd UPI
  • Punjab National Bank- BHIM PNB
  • Bank of Baroda- Baroda PAY
  • Axis Bank- Axis Pay
  • Indian Overseas Bank- IOB UPI


Why UPI?

payment methods

When there are so many e-wallets, payment gateway, and online payment options available, why is the need for UPI then? Well, UPI is unlike all of these options, this initiative by NPCI eliminates the need for e-wallets and entering credit/debit card details and remembering passwords. UPI contradicts the current procedures of e-wallets and Net banking which are prone to hacking and malfunctioning, UPI is more secure. UPI is a great alternative for e-wallet for the following reasons,

Easy Usability:

Unlike e-wallet which involves several steps for money transfer, from adding the money from the bank account to the wallet and then paying the beneficiary from a wallet, it is a lengthy process, UPI is directly linked to the bank account and thus the payment is done directly from the bank account which eliminates the hassle of adding the money to wallet and then making payment giving the payer complete ease of payment.

Increased Adoption:

Many e-wallet apps have already started adopting UPI services into the application. Paytm has implemented the UPI service into their application. UPI is very much useful in transferring funds, It can be used to pay the driver’s salary or can be used to pay for goods or services. UPI platform lightened up after the launch of the BHIM app and later on apps like Google Tez increased the value of UPI in the online finance market.


E-wallet has this requirement called Know Your Customer(KYC) after the introduction of which e-wallets have faced a fall in payments. Whereas for UPI, KYC is not required and thus is preferred by many customers.


In e-wallets, KYC is a lengthy process because of which e-wallets have faced a fall in the volume of payments, but even after completing the KYC, you cannot transfer the money from one wallet to another.

UPI has become a central point in the process of the cashless India Initiative. UPI will transform the economy into a stronger, more independent, and purer one.

Digital Payment Guru provides the merchant with a facility in one of the payment options wherein the buyer can pay a merchant with UPI with lower transaction rates.