India now with 460 million internet users and a decent mobile penetration in urban and rural areas. Since from Dec 2016 transaction through the internet (Digital Transaction) was 965 million as of November 8,2017 10% increase in a transaction.
Digital transactions include those made through credit and debit cards, the unified payments interface (UPI), unstructured supplementary service data (USSD), prepaid payment instruments (PPIs) and internet banking. Transactions across UPI reached a new peak in October. The transaction volume was 76.8 million, up 150% from 30.8 million in the previous month.
So what is UPI?
Unified Payments Interface (UPI) is a system that powers multiple bank accounts into a single mobile application, merging several banking features, seamless fund routing & merchant payments into one hood. Each Bank provides its own UPI App for Android, Windows and iOS mobile platform(s).
Unified Payments Interface (UPI) was developed by National Payments Corporation of India facilitating inter-bank transactions. The interface is regulated by the Reserve Bank of India and works by instantly transferring funds between two bank accounts on a mobile platform.
Why I need to use UPI?
UPI simplifies your online payment and makes the digital transaction in two minutes to less than an hour through IMPS((Immediate Payments Service). UPI is the advanced version of IMPS. UPI has used across the country by many people. Paytm has a wallet which can be used to pay instantly at an e-commerce site and through QR code or mobile number.
How does the UPI works?
How to get/ Use the UPI App?
- Every bank provides a separate mobile application for Banking.
- Link your mobile no with your bank account.
- Register with the bank for the Mobile banking.
- Need to have Debit/credit card.
- Download the mobile application
- Register with the mobile no.
- Use the M-Pin for a transaction.
What is required for Transaction?
- Smartphone with internet connectivity.
- Registered with the bank.
- Balance Enquiry
- Transaction History
- Send / Pay Money
- Virtual Address
- A/c no. & IFSC code
- Collect Money
- Add bank account
- Change / Set MPIN
- A/c Management
Transaction charges varies for banks, no common transaction charges fixed by the government. Here is the list of bank providing UPI facility List of Banks providing UPI Services as on 30.11.2016.Transaction limit 1 Lakh rupees.
Some of the familiar UPI apps other than banks application.
- Amazon Pay
- Airtel wallet
- Free recharge
Need to explore more UPI check out these links
Hope I have delivered something useful. Share your thoughts on UPI and digital transaction in the comment section below.