The Unified Payment Interface (UPI) by the National Payments Corporation of India (NPCI) is the mechanism to enable convenient transfer money between bank accounts by using a pre-loaded mobile device to judiciously use time, energy and efforts. However, the use of UPIs is quite restricted and are opening up the horizon with the passage of time.
Here are the benefits of using UPI :
1. Cheapest Mode of Money Transfer
UPI as a mode of transfer is pretty cost effective and can be easily used anytime, anywhere. NEFT has minimalistic charges of Rs.2.5 for a simple transfer, IMPS charges Rs.2.5 again. However, UPI is extremely pocket-friendly with a cost of less than 50 paise for every transaction. It is primarily the cost-effectiveness of UPI that further promotes non-cash transfers.
2. Makes us Cash Free
With facilities like digital wallets, net banking, etc., the world has almost turned ‘instant’.Additionally, UPI has reduced cash transactions, promoting digital transactions. Mobile wallets, card payments, and net banking have all enabled the smallest of transactions, today!
The seamless and low price transactions have made it possible for nearby shopkeepers to accept and pay money. The moment you accept life in a certain way, it gets you habitual automatically.
3. No Credentials Required
Nowadays, people avoid using online media to save default risks. This is an uprooting of requirements not being met for online transfers. No one wants to disclose bank details including card number, validity period and CVV on public platforms. This is also true for net banking transactions, which is why people prefer cash. The only downside of online transactions is the delayed trust of people in accepting it.
However, UPI is free of all the above-mentioned problems. It doesn’t require the card details and card credentials. A virtual payment address is all that you need for a UPI payment which is just as simple as an email ID.
4. Security Layers
UPI provides the greatest security cover to users with its non-disclosure of credentials clause. Many do not like to use the card for payment or banking details for online transfers. This is merely their fear of losing confidential data over the internet. What if someone overlooks your transaction details or hacks your online credentials to make big transactions.
UPI has totally eliminated this insecurity in users. This methodology is not only secure but sustainable too. In the transactions via UPI, bank account details are not at all required. No credit card details, no CVV, nothing is asked for! A simple virtual ID works well for doing the transaction. Authentication comes easy with UPI and its model.
5. Instantaneous Transfers
UPI works in tandem with an IMPS platform which is functional 24 x 7. The payment can be made anytime at all.