The Unified Payment Interface(UPI) is a payment model that allows you to use your smart phones to send or receive money instantly. UPI merges various banking services and features under one roof. A UPI ID and PIN are sufficient to send and receive the money; real time payments can be made using a mobile number or virtual payment address. To transfer money you don’t need to remember the receiver’s account number, account type, bank name and other information that you would usually need for making transactions.
You can do the transfer only by knowing their Aadhar number, mobile number that is registered with the bank account or the UPI ID. The UPI ID is a unique identification for a bank account that is used to send and receive funds.
How does it work?
- Set up UPI ID on one of the apps that supports UPI service
- This ID can be set up by providing details of your bank account on the app
- The app will send an OTP to your registered mobile number to make sure that you are the authorized person
- Once you enter your OTP to the registered mobile number, you will be asked to create a PIN for your UPI ID.
- After that is done, you can choose any mobile number from your contacts to send or receive money
UPI payments will come in handy when you are facing a situation of making online transactions only. Making online payments safely through UPI transactions has made payments become easier during the coronavirus outbreak. You can make direct payments to your vendors using UPI rather than paying in cash or going to the ATM to withdraw money.