After the disruption of demonetisation in 2016, RBI or Reserve Bank of India decided to change how India made monetary transactions. They had the vision of digitising the financial sector. Hence they came up with the idea of UPI or Unified Payments Interface through which users can quickly transfer money from one person to another online. Also, some of the best UPI apps with cashback offers were developed.
While setting up on this mission, RBI found that the internet user market in India stands a mammoth number of 460 million. With the evolution of the internet to 4G in 2015, it became even easier for them to access the market. And, then came the era of online banking through UPI.
Revolution of Mobile Banking Through UPI
Under the joint contribution of RBI and IBA (Indian Banks Association), the umbrella payment organisation of India NPCI (National Payments Corporation of India) launched UPI. This effort was made to make India a cashless and digitally forward country.
UPI is a mobile-based application that facilitates the online payment method. It allows customers to directly transfer and request money from one bank account to another. This removes the necessity of carrying cash, cards, entering pins, and carrying out complex, physical transactions. Various apps facilitate the UPI methodology, including Google Pay, Phone Pe, PayTM, Amazon Pay, WhatsApp Pay, Airtel Pay, etc. You can easily download these from app stores.
Apart from providing services just for monetary transactions, digital payments also have many UPI apps offers. Since the UPI app is directly linked with the user’s bank account, users can also check the balance and transaction history from the app itself.
To operate a UPI app, here are three simple steps that users need to follow:
- Download a preferable UPI app from the app store.
- Register your phone number and link your bank account with the app.
- Set up a unique UPI pin that would encrypt and authenticate your transactions every time.
Unlike physical transactions through cash and cheques, transactions through UPI are safe and hassle-free. If you have a steady internet connection, the entire transaction would not even take a minute to complete. Moreover, every transaction through a UPI app is encrypted with two-factor authentication. These two factors include the unique UPI pin and the users’ mobile number.
What is Attracting Users to UPI?
The first point of what features attract users to using UPI is the hassle-free methods and the reach of UPI apps. Users can link various apps through UPI and thus, the usage increases. This feature also makes UPI extremely convenient.
UPI apps also detect the receiver bank account through VPA or Virtual Payment Address. Hence, authentication is done before the transaction.
Wrapping Up
UPI is steadily taking over the financial market. More and more fintech companies are investing and creating their apps. The positive side is that the demand for these apps is growing significantly. Hence the need for safer and more convenient apps is vital.