Unified Payment Interface
Today UPI is the best way to digital payments. People want to know the use of UPI in SBI Pay, Paytm, Phonepe, Tez and other apps. In fact, all these apps are riding on UPI wave. After the launch of UPI, the mobile app payment has setback.UPI is a type of interoperable payment system through which any cus-tomer holding any bank account can send and receive money through a UPI-based app. The service allows a user to link more than one bank account on a UPI app on their smart phone to seamlessly initiate fund transfers and make collect requests on a 24/7 basis and on all 365 days a year. The main advantage of UPI is that it enables users to transfer mon-ey without a bank account or IFSC code. All you need is a Virtual Payment Address (VPA). There are many UPI apps in the market and it is available on both Android and iOS platforms. To use the service one should have a valid bank account and a registered mobile number, which is linked to the same bank account. There are no transaction charges for using UPI. Through this, a customer can send and receive money and make balance enquiries.
How to Use UPI ?
To use the UPI payment sys-tem we need a mobile app. The app communicates with the UPI system and facilitates the fund transfer. But to keep the whole system secure, a bank has to play the role of inter-mediary. That is why every UPI app must be sponsored by a bank. Every participating bank of UPI can sponsor or make many apps. The banks have made their own UPI based app such as SPI Pay, Baroda Pay, iMobile etc. On the other hand, they have also sponsored the apps of some other companies such as Yes Bank is sponsoring Phonepe, ICICI Bank and SBI is sponsoring Tez.
How it works ?
For using Unified Payment In-terface, users need to create a Virtual ID or Virtual Payment Address (VPA) of their choice to link it to any bank account. This process doesn’t require either the payee or payer to share bank details. The VPA acts as their financial address and users need not remember beneficiary account number, IFSC codes or net banking user id/password for sending or re-ceiving money.
Steps for Registration
- User downloads the Unified Payment Interface application from the App Store / Banks website.
- User creates his/ her profile by entering details like name, virtual id (payment address), password etc.
- User goes to “Add/Link/Man-age Bank Account” option and links the bank and account number with the virtual id.
User selects the bank account from which he/she wants to initiate the transaction.User clicks on the given options as required.
- Download any bank app or 3rd party app
- Choose your uniue ID (Aadhaar, mobile no.) as virtual payment ad-dress (VPA)
- Selete your bank
- Give account details for first time.
- Set M-PIN for validating Transactions
- Select your bankRegistration completed
Performing a Unified Payment Interface Transaction
PUSH- sending money using virtual address
- User logs in to UPI applica-tion.
- After successful login, user selects the option of Send Money / Payment.
- User enters beneficiary’s / Payee virtual id, amount and selects account to be debited.
- User gets confirmation screen to review the pay-ment details and clicks on Confirm.
- User now enters MPIN.
- User gets successful or fail-ure message.
PULL- Requesting money
- User logs in to his bank’s UPI application.
- After successful login, user selects the option of collect money (request for pay-ment).
- User enters remitters / pay-ers virtual id, amount and account to be credited.
- User gets confirmation screen to review the pay-ment details and clicks on confirm.
- The payer will get the no-tification on his mobile for request money.
- Payer now clicks on the notification and opens his banks UPI app where he re-views payment request.
- Payer then decides to click on accept or decline.
- In case of accept payment, payer will enter MPIN to au-thorize the transaction.
- Transaction complete, pay-er gets successful or de-cline transaction notifica-tion.
- Payee / requester get no-tification and SMS from bank for credit of his bank account.
- Choosesend money
- Enter pay-ees virtual payment address (VPA)
- Enter amount
- Write remarks for transaction
- Confirm the detailsEnteramountHit “SEND”
Best Practices for Users to remain safe
- Beware of Mobile phishing: always download legiti-mate UPI applications from bank’s official website, and be cautious before you download it from App store.
- Keep strong passwords for your phone as well as for your UPI application.
- Do not share MPIN with an-ybody (not even with bank), and be suspicious of un-known callers claiming to be from your bank.
- Use biometric authentica-tion if possible.
- Update your mobile OS and applications as often as possible to be secure from vulnerabilities.
- It is advisable for users to enable encryption, remote wipe abilities and anti-virus software on the phone.
- Keep your SIM card locked with a Pin to avoid misuse, in case of loss or theft of the mobile device; You can contact your subscriber to block the subscription of the SIM card.
- Avoid connecting phones to unsecured wireless net-works that do not need passwords to access.