Categories
Banking digital payments fintech

Learn the predictions for UPI payments in 2020

What bodes well for the future of UPI?

Crisil’s research shows that digital payments in India seem to grow at a CAGR of 12.7% and may jump to Rs. 4,055 lakh crore in FY24 with a five-year CAGR of 20%. Also, prediction shows that UPI payments will dominate the payments space with 59% payment transactions.

Since its inception in 2016, UPI has been making strides in the payments sector in India. With around 1.31 billion transactions in December 2019, it has become one of the sought after payments platform in India.

Future of UPI Payments

At this juncture, it is imperative to learn the future predictions for the UPI payments system. In the course of this blog, let us learn more about the future of the UPI payments system.

1. International launch of UPI Payments in Singapore

The pilot demo of BHIM UPI took place in Singapore in November 2019. It demonstrated a perfect collaboration between the National Payments Corporation of India (NPCI) and Network for Electronic Transfers (NETS) of Singapore. The project is expected to go live by February 2020. Interestingly, this is the first step in internationalizing UPI payments.

The QR code would allow anyone with the BHIM App to make online payments across the payment terminals in Singapore. Further, the international launch comes to the aid of businesses to seamlessly import and export across the borders.

2. UPI Payments-Artificial intelligence link

Artificial intelligence will determine the success of UPI based payments in the future. For example, AI can seamlessly incorporate the auto-debit payment feature. This removes the hassle of remembering the money transfer leading to efficient and effective payment transfer. Also, the chances of human errors get reduced to a minimum.

Further, the use of Artificial Intelligence in the digital payments domain eases the compliance requirements by automating the process. Automation goes a long way easing the process and standards associated with the UPI.

3. Increasing merchant transactions on UPI

UPI has become a major mode of payments not just in the Tier I cities, but also in the Tier II and Tier III cities. For example, roadside tea vendors provide a UPI payment platform in addition to the cash payment system. Small Kirana shops have started implementing UPI based payments on an extensive scale. Be it hotel bill payments or college admissions, it is here to increase the merchant transactions.

4. UPI-Credit card linkage

At present, UPI supports payment through wallets, debit cards, and net banking. Credit card functionality is not made universal. Apps like Phonepe has enabled it on their platform. Going ahead, the credit card feature will be made functional on the different payment applications.

On the whole, the future of UPI looks bright and prospective. We may not be in for a surprise if UPI turns out to be the first preference for all the transactions done in India.

References:


For more blogs, visit SabPaisa Blog

YOU ARE READING THE ARTICLE COURTESY: SabPaisa (SRS Live Technologies) – headquartered in New Delhi with eight regional offices including Mumbai, Bangalore & Kolkata – is a rapidly growing Fintech company having developed one of India’s most advanced AI-driven recurring payments platform bolstered by another of SabPaisa’s unique products: world’s first hybrid payment platform which has all the payment modes in a single checkout page, online and offline, from UPI to Cards to e-NEFT to e-Cash. Businesses that take SabPaisa’s payment gateway get real-time reconciliation and consolidated reports for all payments, recurring or one-time, online or offline, in a single dashboard, whether the payer is an 18-year-old in Kashmir paying through UPI or a 70 year paying through Cash in Kanyakumari. SabPaisa’s payments and collection application suite have already processed more than INR 12 Billion to date. Learn more about SabPaisa here:https://sabpaisa.in

 

 

Categories
Banking digital payments fintech mobile wallets

The UPI vs Wallets war: Who is the winner?

Choose the best payments platform for your business

Recent research suggests that between 2021-22 & 2024-25, UPI will dominate payments space with 59% payment transactions. Interestingly, UPI clocked a whopping 1.31 billion transactions in December 2019. Further, UPI has been dethroning popular payments medium like Wallets, Digital Cards, etc. In other words, UPI vs Wallets debate is a reality.

From the non-requirement of an intermediary to safe and secure transactions, UPI differs from wallets on a number of aspects.

UPI vs Wallets

In the course of this blog, let us learn the crucial differences between UPI and Wallets.

UPI vs Wallets Difference 1: Intermediary involvement/ Money Source

In the case of wallets, money is transferred from the sender’s wallet to the receiver’s wallet. The user has to load money from their respective bank account to the wallet before making a payment. Hence, the wallet acts as the intermediary in the money transfer between individuals. It involves a complex transaction process.

On the other hand, UPI involves direct bank to bank money transfer. There is no involvement of an intermediary, thereby reducing the complex wallet loading step. Hence, you can make the funds transfer with a single step.

UPI vs Wallets Difference 2: Account Identity

In the case of the wallet, the mobile number is the account identification entity. Before you make a transaction, the identity of the sender and the receiver is verified by the wallet application.

Contrarily, in the case of UPI, the VPA (Virtual Payment Address) acts as the payment identifier. It takes the form of:

ex: ******@ (application customised name) -> [email protected]

UPI vs Wallets Difference 3: Interoperability

In the case of wallets, the sender and the receiver have to be registered with the same wallet app to make a transaction. For example, if the sender uses a Paytm wallet, the receiver should have the Paytm wallet to receive the money.

In comparison, the UPI transaction takes place between any two bank accounts, irrespective of the UPI application used to make the transaction. For example, using Google Pay, a sender can transfer money to a receiver who has Phonepe installed on his phone ( using his Phonepe VPA ).

UPI vs Wallets Difference 4: Transaction Limit

Wallets come with a low transaction limit. For example, for non-KYC customers, the transaction limit is 10k/month. And for KYC customers, the transaction limit is 20k/month.

On the other hand, for UPI transactions, there is a limit of 1 lakh transactions/day. However, the upper limit varies from bank to bank, i.e, from 10k to 1 lakh.

UPI vs Wallets Difference 5: Safety

UPI provides a platform for a safe and secure transaction. In other words, every UPI transaction happens with a 4 or 6 digit M-PIN (mobile pin). The MPIN is set up during the initial registration on the UPI App.

Comparatively, there is a chance of security compromise in the case of wallets due to the indirect involvement of the bank. It is basically a wallet to wallet money transfer.

Summary:

Top 5 differences between UPI and Wallets

  1. UPI comes with the direct bank to bank transfer while wallet transactions involve payments from one wallet to another with the indirect involvement of the bank.
  2. The wallet makes use of the mobile number for account identity while UPI makes use of the VPA.
  3. The UPI transfer happens between 2 bank accounts irrespective of the type of UPI app use whereas wallet transfer requires the installation of the same wallet app for money transfer.
  4. UPI transaction limit is 1 lakh per transaction while the wallet transaction is limited to 10k/month for non-KYC customers.
  5. UPI transaction requires an MPIN while wallet transaction may or may not involve an OTP.

Further reading:

For more blogs, visit SabPaisa Blog

YOU ARE READING THE ARTICLE COURTESY: SabPaisa (SRS Live Technologies) – headquartered in New Delhi with eight regional offices including Mumbai, Bangalore & Kolkata – is a rapidly growing Fintech company having developed one of India’s most advanced AI-driven recurring payments platform bolstered by another of SabPaisa’s unique products: world’s first hybrid payment platform which has all the payment modes in a single checkout page, online and offline, from UPI to Cards to e-NEFT to e-Cash. Businesses that take SabPaisa’s payment gateway get real-time reconciliation and consolidated reports for all payments, recurring or one-time, online or offline, in a single dashboard, whether the payer is an 18-year-old in Kashmir paying through UPI or a 70 year paying through Cash in Kanyakumari. SabPaisa’s payments and collection application suite have already processed more than INR 12 Billion to date. Learn more about SabPaisa here:https://sabpaisa.in

 

 

 

Categories
digital payments fintech payment gateway

If you love UPI, you must love these 4 institutions more

Know these institutions to learn more about UPI

Introduced in the year 2016, UPI has positively altered the payments ecosystem in the country by bringing in a wave of digitization. UPI simplifies transactions by making use of the VPA (virtual payment address). It avoids the complex credential entry while making card transactions. Secondly, with the launch of UPI 2.0, features like QR & Signed Intent and Invoice in the inbox has scaled up the UPI security. Behind the success of UPI lies the efforts of numerous UPI institutions like NPCI, RBI (Central Bank), other banks, etc who manage the seamless functioning of the UPI system.

UPI institution

In the course of the blog, let us learn more about the UPI institutions that ensure a safe and secure transfer of your money.

UPI Institution 1: NPCI (National Payments Corporation of India)

National Payments Corporation of India is an organization dealing with retail payments and settlements in India. It is an initiative of the RBI and the Indian Banks’ Association, set up in 2008. The  State Bank of India, Punjab National Bank, Canara Bank, Bank of Baroda, Union Bank of India, Bank of India, ICICI Bank, HDFC Bank, and Citibank are the ten core promoter banks of NPCI.

The core payment products offered by NPCI are:

  • Rupay
  • Bhim
  • UPI
  • NACH
  • Immediate Payment Service
  • AEPS
  • Bharat Bill Payment System
  • BharatQR

UPI is one of the flagship product developed by NPCI. Introduced in 2016, UPI is a safe and secure medium for payment transfers. With UPI 2.0, new security features like Invoice in the inbox and Signed Intent & QR has enhanced the outreach of UPI.

UPI Institution 2: RBI

RBI is the apex bank of India supervising all the public, private, rural and cooperative banks in India. In other words, RBI sets the monetary policy in India in commensuration with the fiscal policy. 

Established under the RBI Act, 1964, RBI has its headquarters at Mumbai. The regional centers spread across the four zones are North in New Delhi, West in Mumbai, South in Chennai and East in Kolkata.

The Central Board of Directors is the major decision making of the RBI. The Board is headed by a Governor and not more than four Deputy Governors.

UPI Institution 3: UIDAI

The Unique Identification Authority of India is a statutory body responsible for the implementation of the Aadhaar based payments system in the country. It was established under the provisions of the Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Act, 2016.

UIDAI issues the Adhaar number to all the residents of the country. Aadhaar number is a 12 digit unique identification number for the Indian residents.

Aadhaar is a multi-purpose card used as an ID card to avail voter’s Id, mobile connection, driving license, etc.

UPI Institution 4: UPI App Service Provider

There are many service providers who have enabled UPI on their app. For example, some of the famous service providers are GooglePay, Phonepe, Paytm, etc. Each service provider offers unique and customized UI features to use UPI services.

On the whole, the successful UPI transaction depends on the successful collaboration and interoperability between all the above-mentioned organizations. 

References:

For more blogs, visit SabPaisa Blog

YOU ARE READING THE ARTICLE COURTESY: SabPaisa (SRS Live Technologies) – headquartered in New Delhi with eight regional offices including Mumbai, Bangalore & Kolkata – is a rapidly growing Fintech company having developed one of India’s most advanced AI-driven recurring payments platform bolstered by another of SabPaisa’s unique products: world’s first hybrid payment platform which has all the payment modes in a single checkout page, online and offline, from UPI to Cards to e-NEFT to e-Cash. Businesses that take SabPaisa’s payment gateway get real-time reconciliation and consolidated reports for all payments, recurring or one-time, online or offline, in a single dashboard, whether the payer is an 18-year-old in Kashmir paying through UPI or a 70 year paying through Cash in Kanyakumari. SabPaisa’s payments and collection application suite have already processed more than INR 12 Billion to date. Learn more about SabPaisa here:https://sabpaisa.in

Categories
Banking digital payments fintech

How to make UPI fund transfer? These 5 awesome channels should not be missed

Best channels for UPI transaction

Are you facing payment issues while making cash payments? But, are you struggling to choose between the best digital alternative? Don’t worry, UPI channels are here to your rescue. Introduced in the year 2016, UPI has positively altered the payments ecosystem in the country by bringing in a wave of digitization.

UPI’s popularity stems from many factors. Firstly, UPI simplifies transactions by making use of the VPA (virtual payment address). It avoids the complex credential entry while making card transactions. Secondly, with the launch of UPI 2.0, features like QR & Signed Intent and Invoice in the inbox has scaled up the UPI security.

UPI Channels

 

In the course of the blog, let us learn the different channels for making a UPI transaction.

UPI Channel 1: Through VPA (Virtual Payment Address)

Money transfer through the VPA is the elementary method of transferring money through the UPI platform. VPA stands for Virtual Payment Address. It is a unique identifier that is required to map the payee details before initiating a financial transaction. A single identifier reduces the tedious task of entering bank details like bank account number, CVV, etc.

VPA format: User-defined [email protected]/service provider

Ex: [email protected] or [email protected]

UPI Channel 2: Account number + IFSC

Money transfer through the Account number + IFSC  is the secondary method of transferring money through the UPI platform. In case you are not aware of the payee’s VPA, you can still make the payment by making use of the account number and the IFSC combination.

The account number is the 12 digit number of the payee’s bank. IFSC code is the 11 digit alphanumeric number provided by the RBI for accurate identification of banks in India.

In your UPI app, search for the Bank Transfer option. A window to enter the Account number and IFSC opens up. After the verification of the payee, you can start making the money transfer.

UPI Channel 3: Mobile Number + MMID

Money transfer through mobile number verification is the third method to do UPI money transfers. It comes with the advantage of filtering out fraudulent numbers in the first go. You can be assured that your money reaches the right destination.

To transfer money through mobile number, open the Phone number tab on any UPI app. Enter the payee’s mobile number. You get a ‘payee verified’ or ‘payee not verified’ message to proceed with your transaction.

UPI Channel 4: Aadhaar Number

If you are not able to make transactions using the above 3 methods, you can use the Aadhaar method to make a UPI transaction. But, this feature is not available on all the UPI apps.

On the Aadhaar number enabled UPI app, go to the send money option. From there, select the Send Money/ Payee address type option. Select Aadhaar number from the dropdown. Subsequently, key in the Aadhaar number of the payee before making the transactions.

UPI Channel 5: Collect/ Pull Money basis VPA

Using UPI, you can send as well as request money from your acquaintances. This feature keeps a track of the money owed to you by your peers.

To access this UPI channel, go to the Collect Money option in your UPI App. Enter the VPA address of the payee along with the collection amount. Also, there is an option to enter the time when you want to collect the amount.

 

 

References:

 

For more blogs, visit https://blog.sabpaisa.in

YOU ARE READING THE ARTICLE COURTESY: SabPaisa (SRS Live Technologies) – headquartered in New Delhi with eight regional offices including Mumbai, Bangalore & Kolkata – is a rapidly growing Fintech company having developed one of India’s most advanced AI-driven recurring payments platform bolstered by another of SabPaisa’s unique products: world’s first hybrid payment platform which has all the payment modes in a single checkout page, online and offline, from UPI to Cards to e-NEFT to e-Cash. Businesses that take SabPaisa’s payment gateway get real-time reconciliation and consolidated reports for all payments, recurring or one-time, online or offline, in a single dashboard, whether the payer is an 18-year-old in Kashmir paying through UPI or a 70 year paying through Cash in Kanyakumari. SabPaisa’s payments and collection application suite have already processed more than INR 12 Billion to date. Learn more about SabPaisa here:https://sabpaisa.in

 

 

Categories
Banking digital payments

The ultimate winner in the UPI vs Digital Cards battle

UPI and Digital Cards have taken the payments ecosystem to the next level

 

Between October 2018 and January 2019, 67 million debit cards went off the circulation in the economy market. Also, as per statistics, around 6 lakh crore was spent using credit cards, an increase of 30%. On the other hand, UPI clocked a whopping 1.31 billion transactions in December 2019. This has opened up a debate on UPI vs Digital Cards.

UPI, introduced in 2016 is an instant digital payments ecosystem. The ease of transactions coupled with security features like QR and signed intent, Invoice, etc makes it more attractive vis a vis credit and debit cards.

UPI vs Digital Cards

In the course of this blog, let us discuss the distinguishing features of UPI vs Digital Cards debate.

UPI vs Digital Cards Feature 1: Ease of transactions

UPI has an edge over credit/debit cards when it comes to ease of transactions. In case of a credit or a debit card, card details like card number, CVV, card expiry date, etc is entered before making a transaction. The enormous details make the transaction lengthy and cumbersome.

Contrarily, UPI transactions take place upon entering the single information, VPA (Virtual Payment Address) of the payee. Hence, UPI transactions happen in a hassle-free and simple manner. There is no complexity like entering the card details.

UPI vs Digital Cards Feature 2: Cash withdrawal feature

Debit cards have an upper hand when it comes to withdrawing money from an Automated Teller Machine (ATM). Money withdrawal is available 24*7 from any corner of the country. Hence, this feature acts as an emergency cushion for people in the need of money.

Comparatively, UPI does not come with a cash withdrawal feature. Money transfer happens from bank to bank in an online fashion.  

UPI vs Digital Cards Feature 3: Level of compliance

Digital cards come with a high level of compliance formalities. For example, to avail a credit card, one needs to have a good credit score. Your credit score helps the banking authorities and companies in processing your credit card request.

On the other hand, UPI does not come with complex compliance formalities. Irrespective of your credit score, you can use UPI to make transactions with KYC verification and your mobile number registration.

UPI vs Digital Cards Feature 4: Refund feature

There are 3 parties in a credit card payment system. Customer, merchant and the intermediary bank ( customer’s bank ). In the case of refunds to the customer, the merchant has to directly deal with the customer’s bank.

While in the case of UPI transactions, merchant and buyer has direct contact. There is no role of an intermediary bank in facilitating the transactions. Hence, there is a reduction in the refund settlement time.

UPI vs Digital Cards Feature 5: Authorising requisite payment

In a credit card transaction system, the overdue amount is auto-debited from a customer’s bank account. Herein, a customer does not have control in authorizing the payment.

Contrarily, in a UPI transaction system, the customer is in full control of the money transfer. He/she can authorize send or receive money requests. Hence, the customer is in full control of the money transactions in the case of UPI.

UPI vs Digital Cards Feature 6: Support from banks

In the case of UPI transactions, banks have access to UPI, even if they don’t allow recurring payments on their systems. As a consequence, there is flexibility and ease of funds transfer.

In comparison, digital cards do not have access to recurring payments if the feature is not active at the bank’s end.

 

 

References:

  1. https://yourstory.com/2019/03/debit-card-numbers-falling-india-wqxk9uygzy
  2. https://www.instamojo.com/blog/credit-on-upi-the-next-big-thing/

 

For more blogs, visit https://blog.sabpaisa.in

YOU ARE READING THE ARTICLE COURTESY: SabPaisa (SRS Live Technologies) – headquartered in New Delhi with eight regional offices including Mumbai, Bangalore & Kolkata – is a rapidly growing Fintech company having developed one of India’s most advanced AI-driven recurring payments platform bolstered by another of SabPaisa’s unique products: world’s first hybrid payment platform which has all the payment modes in a single checkout page, online and offline, from UPI to Cards to e-NEFT to e-Cash. Businesses that take SabPaisa’s payment gateway get real-time reconciliation and consolidated reports for all payments, recurring or one-time, online or offline, in a single dashboard, whether the payer is an 18-year-old in Kashmir paying through UPI or a 70 year paying through Cash in Kanyakumari. SabPaisa’s payments and collection application suite have already processed more than INR 12 Billion to date. Learn more about SabPaisa here:https://sabpaisa.in

 

 

 

 

Categories
Banking digital payments

These 5 UPI security features will keep you asking for more

Learn these tips to do faster and secure transactions

Since its inception in 2016, UPI (Unified Payments Interface) continues to alter the digital payments ecosystem in India. Post the demonetization of Nov 2016, there has been an increasing demand for digital modes of transactions. UPI has commensurately filled up this requirement by offering faster and secure transactions. The money transfer or receive happens faster with the help of the sole information of VPA (virtual payment address). Further, UPI security features have garnered maximum attention since the beginning.

Statistics show that UPI transactions continue to increase by leaps and bounds. This showcases the increasing acceptability of UPI transactions for personal as well as commercial transactions. The transactions spiked to ₹2.02 trillion in December as compared to ₹1.89 trillion in November. Also, UPI touched 10% of India’s GDP since its inception in August 2016.

UPI Security features

There are numerous reasons for the popularity of UPI. One of the significant reasons could be attributed to the robust security features of UPI. It includes two-factor authentication, mobile number verification while registering, etc. Further, UPI 2.0 has brought in exciting security features like signed intent and QR and invoice in the inbox.

In the course of the blog, l will walk you through the security features of UPI in detail.

UPI Security feature 1: Binding with mobile number

This is a significant feature of UPI that brings in the first layer of security. UPI verification of the user happens during the initial login and registration. The UPI app binds with your mobile number to verify your identity. In case, you change the phone or the number, you need to verify your identity again. This option ensures that your credentials stay safe in case of mobile threat or identity threat.

UPI Security feature 2: Two-factor authentication

The second security feature comes into effect during the transaction process. While registering on UPI, users are given an option to set an MPIN (Mobile PIN). It is a 4 or 6 digit number set up while registering on the UPI app. You can generate it by clicking on create/generate MPIN tab and entering the debit card details (last six digits and card expiry details). In the course of transactions, this MPIN is used to authenticate a transaction. You can also change the MPIN if you forget it, using the same create/generate MPIN tab.  

UPI Security feature 3: Signed intent and QR

With a quick response code (QR) and signed intent option, users can check the authenticity of the merchants. Users have the option to check if the merchants are UPI verified or not. In case the merchant is not UPI verified, users get information via notifications. This security feature ensures that QR code tampering frauds remain low. Hence, signed intent and QR features bring in secure and tamper-proof transactions.

UPI Security feature 4: Invoice in the inbox

This is a noteworthy and secure feature addition to the UPI. Before initiating your payment to the merchant, it is possible to view the generated invoice. This brings in security by verifying the credentials of the transacting merchant. In other words, this feature safeguards you from fraudulent transactions.

With the launch of UPI 2.0, the security features are at a top-level. Based on the user requirements, the security features keep evolving and makes UPI one of the most sought after UPI feature.

References:

For more blogs, visit https://blog.sabpaisa.in

YOU ARE READING THE ARTICLE COURTESY: SabPaisa (SRS Live Technologies) – headquartered in New Delhi with eight regional offices including Mumbai, Bangalore & Kolkata – is a rapidly growing fintech company having developed one of India’s most advanced AI-driven recurring payments platform bolstered by another of SabPaisa’s unique products: world’s first hybrid payment platform which has all the payment modes in a single checkout page, online and offline, from UPI to Cards to e-NEFT to e-Cash. Businesses that take SabPaisa’s payment gateway get real-time reconciliation and consolidated reports for all payments, recurring or one-time, online or offline, in a single dashboard, whether the payer is an 18-year-old in Kashmir paying through UPI or a 70 year paying through Cash in Kanyakumari. SabPaisa’s payments and collection application suite have already processed more than INR 12 Billion to date. Learn more about SabPaisa here:https://sabpaisa.in

Categories
Banking digital payments

Meet the next generation payments platform: UPI 2.0 is the name

Dive into the next level of UPI payments with these amazing features

The end of FY 2019 was a landmark year for UPI transactions with a whopping 10 billion transactions. On the other hand, UPI crossed the 1 billion mark in a time span of three years. Since its inception in 2016, UPI grew by leaps and bounds with UPI 2.0 being the latest update on the instant payment transfer system.

The UPI based transaction comes with the benefit of peer to peer transactions from a single platform. Irrespective of the banks, money transfer occurs directly from one account to the other with the help of a virtual payment address (VPA).

UPI 2.0

UPI 2.0 is an upgraded version of Unified Payments Interface (UPI). It endorses enhanced features and improved security structure. Also, it puts forward an easy authentication process. The four core security features of UPI 2.0 centers around linking overdraft account on UPI, signed intent and QR, one-time mandate and invoice in the inbox.

In this blog, we shall learn the basic concepts surrounding UPI 2.0.

UPI 2.0 Feature 1: Linkage of overdraft account on UPI

On UPI 1.0, there is a linkage option to both current and savings accounts of the users. But, with UPI 2.0, an overdraft account of the user or business is also linkable. Overdraft account linkage brings in a flexible money transfer for businesses. Businesses can withdraw money or make transactions even when there is a money deficit in their bank account. It ensures that businesses are not cash-starved during lean reasons.

UPI 2.0 Feature 2: Signed Intent and QR

With a quick response code (QR) and signed intent option, users can check the authenticity of the merchants. Users have the option to check if the merchants are UPI verified or not. In case the merchant is not UPI verified, users get information via notifications. This security feature ensures that QR code tampering frauds are reduced. Hence, signed intent and QR features bring in secure and tamper-proof transactions. 

UPI 2.0 Feature 3: One-time mandate

The significant feature allows you to pre-authorize a payment transfer. For example, if you want your debit account to be automatically debited with a certain amount at a specified day of the month, you can set the transaction command on UPI 2.0. This feature eases the problem of a user forgetting to make the transfer every month.

UPI 2.0 Feature 4: Invoice in the inbox

This is a noteworthy and secure feature addition to the UPI. Before making your payment to the merchant, it is possible to view the generated invoice. This brings in security by verifying the credentials of the transacting merchant. In other words, this feature safeguards you from fraudulent transactions.

On the whole, UPI 2.0 brings in an innovative, safe and secure ecosystem for online payments. At present, major banks like SBI, ICICI, Kotak Mahindra Bank, Axis Bank, Federal Bank, etc have operationalized UPI 2.0 on its platform. Other banks are following suit. Nevertheless, UPI features keep evolving to enhance the peer to peer payment transfer ecosystem.

Reference:

https://www.ccavenue.com/article/NPCI-enhances-Fund-Transfer-through-the-launch-of-UPI.jsp

https://www.bankbazaar.com/savings-account/upi-and-upi-2-0.html

 

 

For more blogs, visit https://blog.sabpaisa.in

YOU ARE READING THE ARTICLE COURTESY: SabPaisa (SRS Live Technologies) – headquartered in New Delhi with eight regional offices including Mumbai, Bangalore & Kolkata – is a rapidly growing fintech company having developed one of India’s most advanced AI-driven recurring payments platform bolstered by another of SabPaisa’s unique products: world’s first hybrid payment platform which has all the payment modes in a single checkout page, online and offline, from UPI to Cards to e-NEFT to e-Cash. Businesses that take SabPaisa’s payment gateway get real-time reconciliation and consolidated reports for all payments, recurring or one-time, online or offline, in a single dashboard, whether the payer is an 18-year-old in Kashmir paying through UPI or a 70 year paying through Cash in Kanyakumari. SabPaisa’s payments and collection application suite have already processed more than INR 12 Billion to date. Learn more about SabPaisa here:https://sabpaisa.in

Categories
digital payments payment gateway Uncategorized

Top 12 UPI-IMPS difference that you should not miss

Choose the best payment mode to grow your business

Did you know that the Asia Pacific region is one of the strongest growing markets worldwide? Expert prediction of the compound annual growth rate of 35.2% justifies this fact. Interestingly, nations like India and China is pioneering market growth via online payment modes. Of the numerous payment modes available in India, it is important to know the UPI-IMPS difference.

In a fast-paced world, the payment ecosystem is constantly evolving based on the consumer’s needs and behavior. Be it e-commerce, retail or startup sector, customers prefer faster purchases and instant payment settlement. Hence, to cater to these needs, digital payment modes have grown by leaps and bounds in India. In addition to the banking cards and prepaid cards, UPI and IMPS are the sought after medium for instant payments in India.

UPI-IMPS

UPI (Unified Payments Interface), developed by NPCI is a popular instant payment settlement system regulated by RBI. On the other hand, IMPS (Immediate Payment Service) brings in interbank electronics transfer in an instant manner. Though, performing similar functions, UPI and IMPS differ in terms of transfer time, card details, security, etc.

In this blog, let us learn the basic differences between UPI and IMPS.

1. UPI-IMPS Difference 1: Ease of transaction

For making an IMPS transaction, you need to enter a lengthy and complex data ranging from Name, Bank Account, IFSC code, etc. This creates inconvenience to a user. On the other hand, the UPI transaction is a simple process of solely inserting the Virtual payment address (VPA) of the payee.

2. UPI-IMPS Difference 2: App compatibility

To make an IMPS transfer, one needs to have the particular app of the debiting account. On the other hand, UPI gives a flexible option of linking with multiple bank accounts from the same app. This reduces space issue upon downloading apps of different banks, in case of having multiple bank accounts.

3. UPI-IMPS Difference 3: Security

As compared to IMPS, UPI gives a secured medium of payment transfer. It is due to the fact that, unlike IMPS, minimal details are entered while making a transaction. But, in the case of IMPS, bank account details are entered, which is perilous on an unsecured network.

4. UPI-IMPS Difference 4: Transfer time

Though IMPS comes with the instant money transfer option, it is lengthier as compared to UPI. Money transfer happens after a new payee registration and a wait time of thirty minutes to make the money transfer to the new payee.

In comparison, UPI payment is done to a new payee without any payee registration or wait time.

5. UPI-IMPS Difference 5: Money Collector

UPI provides the unique option of requesting money collection. You can send the request money message to people who owe you money. This brings in financial credibility in the long run.

On the contrary, IMPS does not provide the option of request money. There is a sole option of money transfer to the registered payees.

6. UPI-IMPS Difference 6: Money transfer abroad

Using the IMPS method, you can transfer money abroad. But, at present, UPI does not have the option of transferring money abroad. UPI transactions are limited to within India, at present.

7. UPI-IMPS Difference 7: Need for smartphone

IMPS transactions require a smartphone along with the relevant app to make payment transfers. UPI followed a similar feature previously. But now, UPI transactions are available in USSD enabled mobiles. This flexibility allows you to access your money irrespective of a smartphone availability.

8. UPI-IMPS Difference 8: Bank account

In the case of IMPS, it is mandatory to have a bank account to send or receive money. It is a bank to bank transfer using IFSC code + Account number or MMID.

However, in the case of UPI, you can receive money even if you do not possess a bank account. You just need to install a payment app to receive money in your wallet.

9. UPI-IMPS Difference 9: Authentication details

UPI payment authentication takes the form of an MPIN number. MPIN is a 4 or 6 digit user-determined number to authorize a payment.

On the other hand, the IMPS transactions happen with an OTP (one-time-password) authentication. Once you confirm and authorize the payment, an OTP is sent to your mobile phone.

10. UPI-IMPS Difference 10: Beneficiary addition

IMPS comes with a lengthy beneficiary addition process. The details like payee name, payee bank account, IFSC code of payee bank, etc are mandatory before making the payment 30 minutes later.

On the other hand,  UPI payment solely requires the use of VPA(virtual payment address) of the payee to initiate the payment.

11. UPI-IMPS Difference 11: E-commerce transaction

Both UPI and IMPS supports e-commerce transactions. One can make B2B or B2C transactions using either UPI or IMPS.

12. UPI-IMPS Difference 12: Transaction charges

At present, both IMPS and UPI are chargeable beyond a certain limit ( generally above Rs.1000). For IMPS, there are different charges on a bank to bank basis. However, for UPI, RBI indicates the transaction charge to fall between Rs.0.50 to Rs. 1.00.

Reference:

 

For more blogs, visit https://blog.sabpaisa.in

YOU ARE READING THE ARTICLE COURTESY: SabPaisa (SRS Live Technologies) – headquartered in New Delhi with eight regional offices including Mumbai, Bangalore & Kolkata – is a rapidly growing fintech company having developed one of India’s most advanced AI-driven recurring payments platform bolstered by another of SabPaisa’s unique products: world’s first hybrid payment platform which has all the payment modes in a single checkout page, online and offline, from UPI to Cards to e-NEFT to e-Cash. Businesses that take SabPaisa’s payment gateway get real-time reconciliation and consolidated reports for all payments, recurring or one-time, online or offline, in a single dashboard, whether the payer is an 18-year-old in Kashmir paying through UPI or a 70 year paying through Cash in Kanyakumari. SabPaisa’s payments and collection application suite have already processed more than INR 12 Billion to date. Learn more about SabPaisa here:https://sabpaisa.in

Categories
Banking digital payments

Everything you ever wanted to know about UPI Apps

Get these UPI apps on your phone and make your payments with just one click

Tired of waiting for online money transfer? If so, don’t worry, Unified Payments Interface (UPI) is here to your rescue. With the help of UPI, send and receive money in an instant, in a hassle-free manner. Further, there are a number of UPI Apps to make your transaction.

There are a number of UPI Apps catering to different banks and service providers. Hence, it brings in a simple, focused and structured approach to payment transfer.

UPI Apps
UPI Apps for smooth payment settlement

In this blog, I will walk you through the popular UPI Apps that make the payment settlement system smooth.

1. Phonepe

PhonePe is a popular payment app with the option of UPI connectivity. The most important feature is the option of an additional wallet link and non-necessity of initial login.

There is no option of mandatory login using the Phonepe App. One can directly login to the site using the website URL.

Also, Phonepe gives access to popular linked wallets like JioMoney, Airtel Money, Freecharge, etc.

Going ahead, Phonepe has an innovative feature of navigating between over 50 apps. This is possible without downloading the app on your mobile or updating the same.

2. BHIM App

BHIM App is the most popular UPI payment App. It has an interesting feature of making UPI transactions from different banks on a single platform. Interestingly, BHIM App at present is available in 13 languages.

In addition to, Send Money, Receive Money and Scan & Pay option, you can also check your pending transactions via BHIM App. There is also an option of raising complaints about the declined transactions.

Further, the built-in security feature allows you to block users who put forth illicit money requests. Also, the user privacy feature enables you to disable your first UPI Id in case of the generation of a secondary UPI Id.

Going ahead, you don’t have to worry about payment reminders or splitting bills. There is an option to set a payment reminder as well as split bill with multiple UPI users in an instant.

3. Paytm

Recently, Paytm has enabled BHIM UPI on its payment platform. It follows a simple setup process with the selection of the ‘UPI App’ option from the Paytm App. Once the bank account and mobile number are verified, you can set the MPIN to start the transactions. The UPI Id follows the format [email protected]

Further, on changing the mobile, the verification of the new mobile number is mandatory to use BHIM UPI on Paytm.

4. MobiKwik

MobiKwik has the distinction of being the first payment platform to launch UPI Payment through its own virtual payment address. Also, Mobikwik provides a platform for P2P payment. So far, Whatsapp and Google Tezz are the sole providers of the P2P payment option.

5. Airtel Payments Bank

Airtel Payments Bank is the first payment bank to enable BHIM UPI on its payment platform. Using this platform, one can make money transfer to both it’s online and offline clients.

6. Google Tez

Google Tez is one of the popular payment apps from Google. Unlike BHIM App, Google Tez does not call for Aadhaar verification. There is a direct linkage of bank account using details like name, account number, IFSC Code, etc. Also, Google Tez has a unique feature of AudioQR sharing directly from one mobile to another. Further, like BHIM UPI App, the amount is transferred from a bank account to another, thereby reducing the need for an intermediary wallet.

Going ahead, Google Tez is also expected to support Credit Cards, Debit Cards, and e-wallets. 

7. iMobile

This is a UPI interface offered by ICICI bank. The funds’ transfer can be carried out without incurring any transaction cost. In addition, one can set the time limit by which the money transfer should take place.

Nevertheless, the lone limitation of this UPI App is that it is compatible exclusively with Android phones at present.

8. Axis Pay

Axis Pay UPI provides all the essential features of UPI along with the unique feature of the UPI mandate. This feature enables automatic debit of the amount from your account on a prescheduled date.

9. SBI Pay

The UPI App from SBI comes with a flexible user interface. SBI is also planning for the web version along with MMID transactions.

10. BOB UPI

This is another secure UPI app from Bank of Baroda. With a stylish and sleek design of the user interface, it comes with all the essential features of a UPI app.

11. Chillr

Chillr app is an app by HDFC with a UPI payment facility. Like few UPI apps, Chillr also provides the option of adding multiple bank accounts on the same app. This eliminates the need to have multiple mobile banking applications for different banks.

12. Uber

Uber UPI has been launched with the intention of integrating existing Uber users to the UPI platform. Herein, the users have to link their bank account to the app and the transactions happen from bank to bank. Further, this feature is available exclusively for Android phones.

13. Freecharge

Freecharge is a digital payment app with  #OntheGo PIN Feature, Payment through Whatsapp Feature, QR Code Scan feature, etc.

Using the OntheGo PIN feature, the merchant transactions can be done in a hassle-free manner. Upon making payments, at the merchant’s side, a PIN is valid for 3 minutes. Once, you receive the payment, the transaction is completed within seconds.

Further, Freecharge has the option of payment feature through Whatsapp. It can be carried out by typing FC followed by selecting the name of the contact to whom money is being sent.

The added security feature of Freecharge is brought about by entering CVV or CV2 before making payments.

14. PayZapp

PayZapp is the mobile wallet app introduced by HDFC. The distinguishing feature of the app is its PIN on the signup to the app. Further, the transaction charges for PayZapp UPI transactions range from Rs. 3-5. The lone limitation of the app is that it is available solely on Android phones.

15. Pockets

ICICI powered E-wallet works both as a wallet cum shopping card. In other words, one can send and receive money from bank accounts as well as friends. Further, the ‘Touch and Pay’ feature with pockets enables you to make transactions with the swipe of a card.

Going ahead, the inbuilt customer support feature makes Pockets all-time reliable.

On the whole, UPI Apps provide a flexible way to transfer money without the hassle of entering complicated bank account details. Apps like BHIM UPI, Google Tez, SBI Pay, etc gives the option of transacting through multiple bank accounts from a single app. Going ahead, UPI is a technology that has the potential for exponential growth in the coming decades.

For more information, refer:

https://www.bankbazaar.com/ifsc/upi-payment-app.html
http://www.chillr.com/
 
https://medium.com/@usm36/best-upi-payment-app-ceca68ffbaac

 

For more blogs, visit https://blog.sabpaisa.in

YOU ARE READING THE ARTICLE COURTESY: SabPaisa (SRS Live Technologies) – headquartered in New Delhi with eight regional offices including Mumbai, Bangalore & Kolkata – is a rapidly growing fintech company having developed one of India’s most advanced AI-driven recurring payments platform bolstered by another of SabPaisa’s unique products: world’s first hybrid payment platform which has all the payment modes in a single checkout page, online and offline, from UPI to Cards to e-NEFT to e-Cash. Businesses that take SabPaisa’s payment gateway get real-time reconciliation and consolidated reports for all payments, recurring or one-time, online or offline, in a single dashboard, whether the payer is an 18-year-old in Kashmir paying through UPI or a 70 year paying through Cash in Kanyakumari. SabPaisa’s payments and collection application suite have already processed more than INR 12 Billion to date. Learn more about SabPaisa here:https://sabpaisa.in