7 Points on UPI Payments 2021

In this new age when everything is fast-paced when the value of time is more than anything else and when the competition has multi-folded, the UPI payments are exactly what was needed.

The ability to make instant and direct bank payments and transfer provides utmost convenience. This innovation has empowered both businesses and customers.

Points on UPI Payments

Introduction
With the Unified Payment Interface UPI, you can send or receive instant payments from anywhere in the world. It enables a direct bank-to-bank transaction. It is developed and introduced by NPCI (National Payments Corporation of India).
How to use it?
You simply need your mobile device to accept 24⨯7 UPI payments. Under the roof of one single mobile application supporting UPI payments mode, multiple UPI participant bank accounts can be added with the help of just your mobile number.

There is no requirement for an account number, IFSC code, or any other bank account details. Though if you want you can enable payment acceptance through these details too.

So, once your customer has an account with BHIM, PhonePe, etc. They can easily make a secure payment through any app directly from bank to bank.

It requires a UPI PIN to authenticate the transaction. The login to the UPI app is also secured with a PIN. While adding the bank account, authentication and authorization take place with the bank account through OTP on the mobile number.

The customer can directly pay to a contact number or just your VPA (Virtual Payment Address) can be used.

UPI for merchants
There is an option in the UPI BHIM app where you can register as a merchant for your business and transact conveniently using the merchant features.

You only need a registered VPA, bank account, and basic details about your business. After registration, you can start accepting UPI payments. You can send the collect request with the set expiry date or validity of that request.

Merchant and customers both get real-time notifications about the status of the payments.

The merchant can generate the QR code and let the customer pay through the scan and pay with their preferred UPI APP.

As it is a bank-to-bank instant transfer, UPI makes it easier and provides a sense of security of the payment received. And the cash on delivery can take the form of UPI on delivery.

Not only that, the merchants themselves can make easy money transfers to their vendors, employees, or any third party. He simply needs to add their respective VPAs and make timely payments. The payment reminder feature will help him remember to pay them. Or the vendors/agents can share the QR code and request the payments.

The integration of the payment gateways like Paykun makes it easier to accept UPI payments through a website, mobile application, or even the payment links.

Benefits for Customers
The customer can make the payment anytime and any day from anywhere. They just need their smartphone, internet, an account in any bank of India, and an active mobile number linked with the bank account.

They can handle payments in a single app and enable payments directly from the bank account. They can access different bank accounts, not just one. They no longer need to involve in the hassles of cash. In the future, wallet-to-wallet payments will also be introduced.

With the help of the virtual ID (VPN) and the UPI PIN, the transaction is safe and secured. No long procedure is required to make the payment and no need for multiple details.

Various apps provide cashback, offers, rewards, etc, this makes it interesting for the end-users to pay with those apps.

Merchants can easily promote the UPI payments to the customers due to its various advantages. On the other side, it is already one of the most preferred modes among the customers.

What’s more for customers
Some of the essential UPI features for the customers are as follows:

They can use the Split Bill Feature through which they can divide the expenses between multiple persons. The customer just needs to enter the total amount and with this feature, the amount will be automatically divided.

The BHIM UPI has the feature through which the customer can set a customized reminder for specific payments.

The customers can make bill payments for various utilities such as electricity, gas, water, DTH, and telecom, mobile post-paid, and landline.

What does UPI 2.0 include?
UPI 1.0 was the person-to-person-oriented approach to send and request money, UPI 2.0 involves various developments for the merchants and the businesses.

The customers can now add their overdraft account to UPI.
The customers can create a mandate and enable the payment on any future date. He can block the money with the help of this feature i.e. pre-authorize the transaction to make the payment later when the service or product is purchased or received.
With another UPI feature, the customers would be able to view the invoice before they authorize the payments. So that they can make the payment after verifying the details and the merchant.
With the Signed intent & QR feature, the customers can check the authenticity of merchants at the time of QR scanning. It provides them the assurance that the merchant is verified and secured. And if not, then the customer receives the notification.

Open-Banking app
The ICICI banking has enabled interoperability by enabling the UPI payments for the customers of any other banks too. Using the ICICI bank iMobile app platform you can link the bank account with any bank and can accept, pay, or even pay to contact.

UPI ID can be linked to the cab service provides like Uber and Ola and seamless UPI payments can be processed with the ICICI app.

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