A rise in online payment systems is a trend characteristic of the digital economy. Digital payment systems have almost replaced traditional cash transactions in every industry. Online payment interfaces have made it possible to get work done without physically paying the recipient in cash. It has allowed anybody to make payments anywhere in the world. Some payment systems are compatible with QR codes, so payments are just a scan away. They’re faster, safer and are presently the most sought option for anybody with a smartphone and a bank account.
The Unified Payment Interface (UPI) is a very popular technology in India. This system combines several banking features into a single mobile app, allowing users to manage multiple bank accounts (from any participating bank) in the same place. It lets users make and receive payments immediately through any mobile device, anytime and anywhere. With UPI, funds can be transferred directly from one bank account to another through a mobile device. The UPI system is regulated by the Reserve Bank of India (RBI), which implies that they’re an extremely safe payment option. Additionally, users don’t have to enter details like bank account number, card number or IFSC code once they have a UPI ID. It adds a layer of security.
Presently there are more than 100 online payment app in India that allow payments through UPI. Usually, banks have their online banking platform. Apart from apps operated by banking institutions, there are approved third-party e-wallets and online payment apps. You’re not alone if you need clarification about what app would be the best to use. Here are a few questions whose answers will make it easier for you to choose:
- Does it have in-app security features? : Usually, users must enter their pin while making a payment through a UPI app. This guards them against unwanted transactions. But other than the requirement for a pin, you must also look for additional security features of the app itself. For example, some apps require you to enter a code or screen lock every time you open the app. It ensures that you are operating your mobile device and making the payment.
- Does it offer rewards like cash back or points? : while security should never be sabotaged for rewards, there’s nothing wrong with choosing the best deal for yourself. Mainly, bank-owned and some third-party-owned online UPI systems reward users with cashback or other rewards when they make payments to the companies they’ve partnered with.
- Does it also have a digital wallet?: While an e-wallet isn’t absolutely necessary, it contributes greatly to making your digital payment experience seamless. The term is self-explanatory- like a physical wallet, an e-wallet can store more than just money, like tickets, coupons etc. It gives the user more accessibility and eliminates the chances of a user losing things (only as long as they do not lose their phone).
Key takeaways: UPI is an online payment method that allows users to make and receive money directly from bank accounts. Multiple apps offer UPI services, but the best ones have multiple security features, rewards and maybe a digital wallet.