You have many ways to pay cashless. But you would agree that UPI is the best. Within four years this payment system has dominated the market. Now everyone is saying #upichalega
You would find that most of new cashless users only know about the UPI. While NEFT, IMPS and RTGS are there since many years. But, still there is potential to expand the cashlesss payment through the UPI. That’s why NPCI and banks are promoting this payment system through the campaign #upichalega.
My website upipayments.co.in is also sharing useful information about the UPI. Once Again, I would revisit the UPI payment system to pay my part for the #upichalega.
1. Instant UPI Payment
The best thing about the UPI is the speed. It transfers money instantly. Just after the fund transfer the sender and receiver both get the SMS instantly. It means the money has been transferred. No other payment system works this fast.
Although, since last few months, NEFT payment system also sends money just after the approval but it is not as much fast. I have experienced that it takes almost 10 minutes. I never get the SMS instantly for the NEFT transfer.
Yes, IMPS is as much fast as the UPI but it lacks on some other features. RTGS is fast but it can’t be used for less than Rs 2 lakhs.
2. Easy Payment
It is very easy to pay using the UPI. In fact sending money has become बच्चों का खेल thanks to the UPI. This payment system works on the mobile app. We know that transactions through the app is much easier than the netbanking through the website.
Moreover, you are not required to enter the complex passwords for making payment. Rather a 4/6 digit PIN is used for the approval.
Also, In the UPI system, it is not necessary to enter the account number and IFSC of the beneficiary. Instead, you can give the UPI ID. It is easy to remember and enter the UPI ID than the bank account number. Most of the UPI ID are based on the mobile number. Thus it is very easy.
You can can also make a payment just by scanning the QR code of the beneficiary. It is a cakewalk.
3. Free To Choose UPI App
Traditionally we have to use the mobile banking app of our bank to do any transaction. But the UPI has given us a very unique liberty. Now, it is not necessary to use the mobile app of your own bank. Rather, you can use the mobile app of other banks to make payments.
Not only this, you can also use non banking apps to send money. Because of this liberty, we can access our bank account in Paytm, Phonepe, Mobikwik etc.
The UPI system has made our bank account very much accessible. There are more than 5 dozen mobile apps which gives you the facility of UPI money transfer. You have plethora of options.
4. Free of Cost
This is icing on the cake. You do not pay any fees for the fund transfer through the UPI. Whereas, the NEFT, IMPS and RTGS used to charge fees for money transfer.
The payment through the debit card and credit card is very costly for the merchants. But because of the UPI now merchant can get cashless money without paying any fees. Thus, merchants are accepting cashless payment without bothering about the charge.
By the way, the RBI has waived the charge of NEFT and RTGS as well. It has also instructed banks to pass of this waiver to the customers who use the online banking. Still, some banks charge for the NEFT and IMPS transfer citing the expenses.
5. Available in Every Platform
UPI Payment system is versatile. You can use this system for any type of payment. Be it normal fund trasnfer to the friends and family or payment to the merchant.
Today online shopping sites are using this system to accept payment at their sites and on the doorstep as well. you can also book tickets and pay bill through the UPI.
The AEPS system is also based on the UPI. Even you can also get cash using this system. The Phonepe ATM is such an example.
6. Widely Accepted
Be it small shop or big outlet, you would find the QR sticker for making the payment. All these codes are linked to the UPI payment system for taking payments.
The shopkeeper who were not very enthusiastic about the card payment, are now using the UPI system happily. This could happen because of the ease and trust. Today, a merchant knows that payment made through the UPI would definitely come to the account.
This trust of the people has made this system very popular. Today, the UPI is widely accepted. Merchants prefer this system instead of the card payment as It does not charge any fees.
7. QR Code Feature
The payment through the QR code is very easy. Once, you start using this system, you would find it very useful. Because of the QR system, you are not required to enter the details of the beneficiary.
As you scan the QR code the UPI app fetches all the details of the beneficiary, and the sender can instantly send the desired amount.
The QR code does not require the assistance of the merchant. Thus it makes him free from the payment process. The merchants have to only check the payment.
The payment through the QR code is so useful that Online sites even use QR code to get money through the UPI system.
8. Request Feature
This feature is unique to the UPI. Using this feature you can request money from someone. No other payment system give you this facility.
In this system, one has to enter the UPI ID of the person to request money. As you initiate the request, the other person would get a notification on the mobile. After tapping the notification, the UPI app opens and the person would see a page to approve the payment. After the approval, the money instantly credited to your account.
This feature can be used in numerous cases. It can be used to get back the lent money from your relative or friend. It is a humble way to ask for money.
The merchant can also ask money from their customers using this feature.
The online shopping sites and other e-commerce sites also use this feature to accept payment through the UPI. AT the time of the payment, you have to enter your UPI ID. As you enter this ID, the online site would send a request to your UPI app. You have to just open your app and approve the payment.
9. UPI Mandate Feature
The UPI also gives you the feature to set mandate. Mandate is useful for the recurring future payments. In this type of payment, you set the maximum amount and frequency of the payment. The beneficiary can ask money within the set limit. Further, it does not require your permission.
The Mandate feature is useful for the bill payments and business payments. The SIP payment and credit card bill payment can be also done through the UPI Mandate. As It reduces your effort. Since, it is an account to account money transfer, you do have the proof of the payment. Thus, it is safe as well. The ECS feature of the banks also works on same method.
10. UPI Payment for IPO
The UPI payment system can be also used for the IPO subscription. In the IPO, investors has to apply before the actual allotment of the shares.
In fact an application does not guarantee the allotment of shares. The shares can be less than your demand, even you may not got shares altogether. Thus, the amount is not given upfront. Instead, the amount gets blocked in the account of the investor.
The amount is released to the company or investor according to the share allotment. This system is managed through the ASBA.
Now UPI also gives this facility of blocking the IPO amount till the actual allotment of the shares. So, at the time of the IPO application, you can also choose the UPI instead of the ASBA.
11. UPI in Feature Phone
The UPI payment system also works on the Feature phone. In the feature phone it uses USSD technology instead of apps. In this technology, you fetch data using certain codes. These codes start with the Asterisk (*) and ends with the hash (#). You may have used such codes to check your mobile balance. The same method is also used for the UPI transactions.
You have to dial *99# to acess the UPI payment system. After dialing this code, you would get the options of UPI payment e.g. send money, check balance, request money, reset UPI PIN etc. You have to follow the onscreen direction for proceeding further.
Sometimes #UPIChalega does not work. There are some limits of the UPI payment system. The most prominent limitation is the per day limit of the transaction. You can’t send more than than Re 1 lakh in 24 hours. Also, the number of transactions can’t exceed more than 10 within 24 hours. However, merchant transaction are out of limit. Such transactions are not counted for the limits.
So in this post, I have told you the top 11 features for the #UPIChalega. In the next post I would tell you the steps to use the UPI in different occasions.