Moreover, the UPI would be even better since early 2017. It will have following features.
Upcoming Features of UPI
As of now, you use UPI system to transfer money to a person who has the bank account. But, In the next version of UPI, the utility bill payment would be also available through the UPI. You can pay for telephone, mobile, electricity, insurance, and credit cards to settle his dues, anywhere, anytime. In fact, two banks would launch the UPI-based bill payment system very soon. For the bill payment, the UPI would integrate the Bharat Bill payment system with it. This bill payment system can be also used for EMI collection.
Often you forget to pay the bills. The UPI would also resolve this problem. It would come with the pre-authorized transaction. In this case, You can authorize certain billers to draw the billed amount automatically before the due date. It would make you stress-free about the bill payments. You can also limit such automatic payment. You would have the option to limit the maximum amount and applicable date. This system would also work for EMI payments.
Do you enjoy the fingerprint scanner of your smartphone? It has eased the unlocking of the smartphone. Same technology would be used for the UPI payments. The fingerprint scanner and iris scanner would be used for the UPI payment authentication. To give this facility, the UPI would use the services of Aadhaar. Remember, during the Aadhaar registration, your fingerprint and iris were captured. This technology would work on the phones which can capture fingerprints or high-quality iris image. The biometric authentication would end the need of MPIN during UPI money transfer.
Also Read: Benefits of Aadhaar Enabled Payment System
Check on Speed of Transaction
Ther would be greater security with the UPI 2.0. The UPI is working to check the very fast UPI transaction as it would mean an automated transaction. This type of velocity check is used by some banks. The UPI would work on this aspect as well. If such a fast and suspicious transaction happens the UPI would alert the bank and customer, both.
The UPI is also working to limit the number of transaction in a day.
The UPI gives an error if the same mobile number is linked to different people’s bank account. It is common that same mobile number is registered to the account of the father, mother and daughter. The UPI would resolve this problem in the next version of UPI.
As of now, you can’t schedule a payment using the UPI payment system. But the next version of UPI would also have this facility. It will give more flexibility to payers.
Aadhaar Based Payments
The UPI would also facilitate the payment using the Aadhaar number. Similar to the mobile number Aadhaar is also a unique number. No two person can have one Aadhaar. As it is already mapped with various bank accounts. The payment to the Aadhaar number would reflect into the bank account. You can see the payment option of Aadhaar, however, it is not active yet.
Must Read: Terms and Conditions of UPI
Existing Features of UPI
There are many unique features of UPI, you must be enjoying these. Here is a recap.
There are two types of UPI-based application. The first application is person-to-person. It facilitates the money transfer between two persons. The second type of application is designed for e-commerce transactions. The online shopping companies can use this application
Real Time Fund Transfer
Unlike NEFT and RTGS, the UPI system transfers money immediately. It is always available. You can pay money any time irrespective of time or day. It works like existing IMPS based fund transfer. In fact, UPI is based on the IMPS fund transfer.
VPA based Payment
The UPI uses Virtual payment address (VPA) instead of the bank account and IFSC code of the payee. Thus you don’t need to know the bank account of the beneficiary. It makes UPI system more secure than NEFT, RTGS and IMPS. the Virtual payment address is similar to the email address.
The UPI gives the facility to ask for a payment. No other bank account based payment systems give this facility. Because of this system, it would be very easy to ask payment from the customers and borrowers.
Do you find UPI payments promising? Do you want to try the UPI-based apps? It is very easy, there are scores of UPI apps. You can use any of them irrespective of your bank. You can use the SBI UPI app for PNB bank account or ICICI UPI APP for the Bank of Baroda account. The HDFC UPI App can work for the axis or any other bank. There is a lot of flexibility. Just take a step.