United payments interface, more commonly known as UPI is a groundbreaking digital payment system. It is designed to work seamlessly across all banks, card networks, and digital wallets.
The system was designed keeping in mind the practical needs of the new age customer and seller. It helps those who needed a system that could handle transactions without any glitch across the entire banking network in the country.
Currently, there is no other system that can match up to this technology anywhere in the world. Multiple countries are currently experimenting with implementing this technology in their own country.
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Here’s everything you need to know about this payment system and how it is different and more efficient than any other system currently in operation!
Works Seamlessly Across Networks
As mentioned, the UPI payment gateway works seamlessly across all banks and card networks making it the most convenient method to pay for goods and services. Transactions happen through IMPS, meaning that there is no waiting period between the time someone initiates a transaction and the intended person receiving the funds. Unsurprisingly, it has become a lightning-fast option for everyone. Moreover, the system is available 24×7, so transactions can happen at any time of the day without any glitches.
Secure and Convenient
Unlike other payment modes, such as in the case of credit/debit cards, net banking, etc. there is no exchange of financial information such as card numbers, or bank account details. Once a user has connected their bank account to the unique UPI ID which is different for every user; a person can simply scan a QR code to make payments.
Even in the case of bank-to-bank transfers, you need to enter the unique UPI ID of a person for the transaction to go through. It makes UPI a very convenient option as there is no need to remember lengthy bank account details or wait for a beneficiary to be added to the bank account. Simply enter the UPI ID and the transaction is good to go.
Cost-Effective for Small Business Owners
Most small business owners, including people running small shops selling groceries, medicines, clothes, etc. may not have the funds to invest in a pos device, which is critical in the case of credit/debit card transactions. Since UPI works with QR codes, they can simply link their bank accounts to the UPI ID, generate a QR code, and print it off a regular printer.
Once it’s done, they just need to put it somewhere where users can scan the code using their smartphones to pay for goods and services. Moreover, there are no charges whatsoever on UPI transactions, so the seller gets to keep the entire amount, and the buyer doesn’t need to pay only the retail price making this technology a win-win for both parties.
No Caps on Transactions
Unlike some other platforms, UPI comes with no caps on the number of transactions you can make in a month. One can use the platform to make everyday payments, without needing to worry about caps at all. And since there are no charges, as mentioned, it makes up one of the best payment platforms in terms of usability and accessibility currently in existence.
UPI has become one of the most widely used payment platforms in the world, with close to $300 billion dollar worth of transactions in 2021, which is a whopping 60% of all online transactions. It’s being forecasted that the platform will hit a transaction value worth $1 trillion by 2026, which is a significant amount in a country like India, where traditionally most of the transactions used to happen via cash.
If you run an online business and offer easy online payment options, then UPI is a must as it is one of the most secure, convenient, and flexible options that you can offer your customers!
