The Unified Payments Interface, popularly known as UPI, is a fast and instantly mobile payments system that allows real-time mobile payments to be made from a single mobile app of a participating bank. This instant payment system of UPI was developed by the National Payments Corporation of India (NCPI) in 2016.
UPI has transformed digital payments in India. It enables both individual and merchant payments to be made instantly without the need of a credit or debit card. The arrival of UPI in India has been a major step towards the country moving to a cashless economy. Digital payments made through UPI are free and allow the money transfer to happen immediately from one bank account to another.
Some statistics about UPI
Here are some recent statistics about UPI that reflect on its popularity in India.
- In FY 2023, more than 84 billion UPI transactions were carried out worth nearly 139 trillion rupees all over India. (Source: Statista)
- UPI processes more than 75 percent of India’s retail digital payments, More than 14 billion UPI transactions were registered in May 2024. (Source: European Payments Council)
- In July 2024, UPI transactions crossed Rupees 20 trillion for the third successive month. (Source: The Hindu)
Features of UPI
The Unified Payment Interface (UPI) offers several features. Here are some of them.
| Feature | Description |
| Instant real-time system | UPI makes fast money transfers possible between bank accounts. It is quicker than NEFT and RTGS. |
| Availability at all times | UPI is available 24*7*365 allows individuals to transfer money anytime, anywhere in just a few seconds. Funds can be transferred even on public holidays. |
| One-stop solution | A single UPI application allows access to multiple bank accounts. |
| Request money | UPI is a payment interface that allows an individual or a merchant to request money online by sending a message. |
| No charges | UPI transactions are completely free, i.e. no extra charges are levied unlike NEFT and IMPS which charge customers. |
| No lower limit on transactions | With UPI, there is no lower limit on transactions. Customers can transfer an amount of Re. 1 as well to merchants and other people. |
| Autopay | The Autopay feature of UPI makes it possible to set up recurring payments. |
| Multiple payment methods | With UPI, payments can be made through barcode scanning, UPI ID, recipient’s mobile number, or through bank account details. |
| Security | There are stringent safety and regulatory protocols in place for UPI transactions. Also, it is backed by multi-layer encryption and pre-defined transaction limits. |
| Transaction history | Customers can directly view the history of previous transactions on the UPI app. |
| Raise complaints | Complaints can directly be raised via. the UPI application. |
Also Read: Auto WhatsApp Payment Reminder For Faster Payment Collection
Advantages of UPI
Here are the advantages of UPI.
| Advantage | Description |
| Ease and convenience | UPI is simple and easy to use. Transactions can be carried out instantly without the need to login into a bank account. |
| No need of bank details | To initiate a UPI payment, users do not need confidential bank details of the recipient. Only the mobile number of UPI ID is required. |
| Real-time transactions | UPI transactions happen instantly in real-time without any delays. Funds can be transferred on bank holidays, 24*7 without the need to wait. |
| No transaction charges | UPI transactions come with no fees or charges, making them a cost-effective option for making payments. There are no hidden or extra charges. |
| Highly secure and encryption | A UPI platform is built with robust security measures. UPI transactions are backed by multi-factor authentication and end-to-end encryption to protect sensitive user data. For initiating transactions, a confidential UPI PIN is required. |
| Make payments from different bank accounts | With a single UPI app, users can initiate payments from different bank accounts. |
| Cashless transactions | UPI allows individuals to make cashless transactions and avoid the hassles of carrying cash. |
| Merchant-friendly | UPI is an easy method of accepting payments from customers for both micro and small businesses. |
| Real-time monitoring | It is possible to easily track the payments made and received via. UPI in real-time. |
Also Read: Maximize Your UPI Transactions: Understanding 2024 Limits Under Income Tax & GST
Without a doubt, UPI has completely transformed how Indians make payments to friends, family, and merchants. It has empowered millions of individuals to carry out hassle-free transactions from one bank account to another, from a consumer to a business, or between two individuals. One of the major reasons why UPI has become so successful amongst India is that there is no transaction fee levied on the transfers. The host of advantages and features that UPI offers makes transactions more secure, seamless, and comfortable. UPI transactions have become a preferred choice for millions of Indians due to instant fund transfers, robust security and utility bill payment features. Considering the success of UPI in India, several countries across the world have started accepting UPI as a mode of payment. Some of these countries are Sri Lanka, Mauritius, Singapore, Maldives, Malaysia, France, UAE, Singapore, Bhutan, and others. With UPI, individuals can experience the power of digital transactions right at their fingertips.
