Unified Payment Interface (UPI) is a payment platform that allows you to send and receive funds through a mobile phone. The Reserve Bank of India regulates and releases guidelines that every payment service provider should follow. UPI payment is instant, and you can transfer funds in a fraction of seconds. Likewise, you don’t need details such as the beneficiary’s name, bank account number, and IFSC code to transfer funds.
Who is a Payment Service Provider?
Payment service providers are mobile apps that allow users to make digital transactions. The National Payments Corporation of India (NPCI) acts as a mediator between banks and payment service providers. NPCI ensures that the money exchange between banks and payment service providers reaches the right destination.
The payment service providers allow you to make a UPI payment through your UPI ID. The NPCI certifies the trustworthiness of payment service providers. So, make sure that you download a certified app.
UPI ID and PIN
The UPI ID, also known as Virtual Payment Address (VPA), identifies every mobile user without revealing his name and bank information. Every user needs a UPI ID for online transactions and how to create a QR code. Banks can trace a mobile user’s bank account through the UPI ID.
The UPI ID has the following format: [email protected]
The first few alphabets identify the mobile user. It can be your first name, phone number, or even email address. The second part is the name or initials of your bank.
Every time you want to make a transaction, you have to enter a pin. This pin protects your details from getting stolen.
How to Create a UPI ID
First, make sure that your bank account and mobile number are linked. If not, contact your bank to link it. Also, you can link it online through the app provided by your bank. Now follow these steps:
- Download the payment platform on your smartphone. It is a mobile app you can download from Google Play Store or App Store.
- The app will ask for your mobile number. Make sure to select the correct SIM slot and enter the mobile number. The number you enter should already be linked to your bank account.
- You will receive an SMS to confirm your mobile number.
- Set a PIN to secure your bank details.
- Then select your bank name from the list presented before you. The app will fetch your bank account details from your mobile number.
Now, you have a UPI ID linked with your bank account. You are ready to make UPI payments through the app.
Transferring funds through a UPI app
There are three ways you can transfer funds through a mobile app like the Fave app:
- The first method to transfer funds is by entering the beneficiary’s bank account details. You need details like the receiver’s bank account and IFSC code to send money in this method.
- The second method is by entering the receiver’s UPI ID and confirming your decision.
- The third method is by scanning the QR code of the receiver’s UPI ID details. This method is fast, easy, and convenient. You don’t need to type the details manually.
Sending money through the receiver’s UPI ID
Among the three methods we talked about earlier, the second method is the most common one. We will see how you can make a UPI payment in this method.
- The first step is to get the UPI ID of the receiver. You should already have a UPI ID to send funds.
- Open your payment app, and click the option to transfer funds.
- Enter the amount of money you want to send.
- Select the bank account from which you want to transfer the money.
- Once you have confirmed it, the amount will be sent to the receiver’s bank account.
Requesting money using UPI ID
Payment apps allow you to request money from a friend. To request funds, follow these steps:
- Log in to your mobile payment app with your PIN.
- Find the option that allows you to request money in your app.
- Enter the UPI ID of your friend.
- Confirm your request for money.
- Your friend will receive a request for money from you.
- Your friend should approve the request and confirm it by entering his PIN,
- When your friend confirms it, you will receive the money in your bank account.
These are a few ways through which you can ask or send money in seconds. UPI payment have changed the way of funds transfer for everyone. There is no more waiting in bank queues for transferring funds, no hassle for carrying exact change for transactions; everything happens just with a click.