UPI or Unified Payment Interface has revolutionised banking transactions. Payments through mobile phones have become very easy thanks to the UPI payment apps. You can pay someone just by scanning a quick response, i.e., a QR code. UPI apps differ from the initial version of net-banking facilities.
Both banks and non-banking institutions work in collaboration to manage UPI apps and payments. Whether you are an iOS or Android user, you can download and use the UPI payment app.
What is UPI payment and how to do it?
UPI payments are alternatives to online fund transfers such as IMPS, NEFT, RTGS etc. These are fast, secure, and reliable and, you can transfer funds up to 2 lakhs per day within seconds.
After opening a bank account online, you can easily pay people. UPI banking apps have eviscerated the need to carry cash nowadays. Payment with UPI apps involves the following simple steps:
- Log into the account and click on the option that allows you to carry out payments
- Either select a beneficiary from the contact or type the mobile number of the beneficiary
- Type the amount you want to pay and then validate the transaction by entering the OTP sent to you through SMS.
Now that you know what UPI bank apps are, let’s look at the benefits of these apps:
- Payments can be completed within a minute:
In the past, if you wanted to deposit a high-value sum into another account, you needed to visit the bank in person. Conversely, with UPI apps, you don’t need to adjust your schedule anymore. With a few simple clicks, payment can be completed within a minute. Moreover, you can carry out the payment at whatever time. Be it in the middle of the day or even the midnight, UPI apps don’t have any time restrictions.
- These apps have simplified payments:
Before UPI apps, to transfer money to another bank account, you needed to enter the bank account number and the bank branch IFSC code. But with these apps, all you need to do is either scan the QR code or enter the mobile number or UPI ID of the one you are sending money.
- Opening an account has become easier:
Before the introduction of net-banking services, even the smallest banking services required you to visit the bank physically. Be it making a payment or track expenditures, offline banking took time. But nowadays, these services can be completed quickly. For example, you are thinking of signing up for a current account. Instead of visiting the bank physically, you can complete the current account opening on the app. All you need to do is fill in the application form and provide official documents that could verify the information provided on the form.
- You could make use of the auto-pay feature:
One of the most salient features of UPI apps is the feature of auto-payments. Through this feature, you need to set up a standing instruction with the bank to automatically deduct a certain sum from your bank account for payment on a set date. For example, With IDFC FIRST Bank’s mobile banking app, you can mandate standing instructions for utility bill payments, mutual fund SIPs, and credit card payments.
The National Payments Corporation of India (NPCI) which has launched UPI apps has created a payments platform that’s both hassle-free and cashless. It is very easy to understand and use a UPI app.