UPI (Unified Payments Interface) is a smartphone application that allows users to make online transactions seamlessly. The mobile payment system is regulated by the Reserve Bank of India (RBI). UPI is considered a safe and secure payment method, which means you are not required to fill in sensitive information like your personal or bank details every time you make a payment. The process for online UPI payment is quite simple and free of charge. All you need to do is download the payment application and add the virtual address of the payee. The UPI payment method works 24×7, so you don’t need a digital wallet or credit or debit card to pay online. You can easily do a money transfer or scan a quick response (QR) code to transfer funds. To understand better, let’s look at how UPI payment works and what its framework entails.
How does UPI work?
UPI simplifies online payments. During a transaction, you get your details and a billing request on your phone – which you can accept or reject right away. To initiate a transaction, you can either use your global or local address. The global address includes your mobile number, Aadhaar number, and bank account details. On the other hand, a local address is your virtual address. It allows you to transfer money from multiple banks and prepaid payment issuers. You can give your virtual address to make payments by authenticating the transaction. Once you enter your password, the payment will get completed.
How to Create a UPI Account?
Given below is the process to set up your account:
Step1: Make sure you have a smartphone and a bank account with a UPI enabled-bank.
Step2: You must have your mobile number registered with the bank.
Step3: Download any UPI app like PhonePe, Paytm, Google Pay, BHIM, etc.
Step4: Once you’ve got the app, you will be asked to create a UPI ID on the app.
Step5: The bank will send a one-time password or an OTP to your mobile number to verify your contact information.
Step6: On completion of the verification process, you can set up your Virtual Payment Address (VPA).
How safe is it?
The National Payments Corporation of India (NPCI) claims that UPI is the most secure mode of cashless transactions. Here are the safety features of the UPI platform:
- Verification
On the UPI platform, mobile verification is the first step of registration. It binds your UPI account to your registered mobile number. However, if you change your number, you will have to complete the verification process again. In case of loss or theft of your mobile phone, you can block the number and prevent transactions from your bank account.
- Transaction
Whenever you make transactions through UPI, you need to put in a 4 or 6-digit mobile pin called the Mobile Banking Personal Identification Number (MPIN). The pin is created at the time of setting up a UPI ID. You can authenticate every transaction securely with your unique MPIN.
- Authentication
The UPI system has an embedded feature with which you can check the authenticity of merchants, thus preventing fraud. With Quick Response or the QR code and signed intent option, you can find out whether the merchant is UPI-verified. This way, you get complete security while making UPI transactions.
All the above factors demonstrate that UPI is a seamless and efficient way of performing monetary transactions on a real-time basis. You can download a UPI app like the Airtel Thanks App for Airtel Payments Bank to make payments digitally. The app lets you make DTH recharges, pay utility bills, pay mobile bills, and conduct money transfers online. You can also link your Airtel Payments Bank account with the Airtel BHIM UPI, as it is integrated with the BHIM UPI interface.
