Unified Payment Interface (UPI)
Candlefocus EditorUPI can be best described as a kind of digital wallet. To start using the service, people are required to create a User ID in their smartphone banking app which can be linked to multiple bank accounts. Once the ID is created, transactions can be quickly verified and completed by entering a PIN or biometric authentication such as fingerprint or facial recognition. People can also use the same User ID to receive payments from merchants or other individuals.
A major benefit of UPI is its real-time approach to transactions. Firstly, users no longer need to wait for several days for a transaction to be processed. Secondly, users can make and receive payments at any time of the day, instead of being limited to traditional banking timelines. Thirdly, UPI is much more secure than traditional payment methods, as the user's bank account information is not shared when making a transaction.
The growth of UPI has been monumental, as it is now used by millions of people in India to instantly and securely make and receive payments. The use of UPI has also allowed users to pay digitally through various app-specific QR codes, thereby removing the need to use physical cash. With the rapid rise of digital payments, the usage of UPI is anticipated to grow even further, thereby revolutionizing the way India pays.