There are many apps and mobile wallets in India that allow customers to make payments through the Unified Payments Interface (UPI), and some of these also include apps of banks that the UPI has tied up with. There has been a surge in the number of UPI transactions in the recent past and it is gaining widespread popularity among smartphone users across the country.
UPI has been launched by the National Payments Corporation of India (NCPI) and has tied up with over 52 banks in India. One can transfer money at the click of a button using UPI by providing IFSC code and account number of the payee using NEFT or RTGS, etc or a Virtual Payment Address (VPA).
Let us take a look at some of the apps that have launched the UPI service and some that will soon do so.
A number of payment apps in India have included UPI as one of their payment modes. Let us take a look at some of them:
Google Tez: One of the most recent launches by technology giant Google is the UPI-enabled app Google Tez. The app allows users to make online and offline payments and also money transfer transactions. Google has collaborated with NCPI to launch this service. Using this app, customers will be able to transfer funds using IFSC code and account number. The app can be downloaded from Google Play Store. This app is very user-friendly and also very simple to setup and use.
Paytm: This is one of the apps that has collaborated with UPI. Users can add money into their Paytm app using the UPI VPA. This enables customers to make a request for money and also receive money through the interface that is integrated on the Paytm app.
Mobiwik: This payments app has also embraced UPI as one of the modes of payment. Apart from the usual modes of transacting such as net banking, debit or credit card usage, UPI will be one of the options given to customers using this app.
PhonePe: Among all the other apps, this remains a popular one that provides users the option to transact using UPI.
BHIM app: Expanded as Bharat Interface for Money, BHIM app has been launched by the NCPI. Those who use this app can transact using the UPI interface. One of the main advantages of this app is that it allows users to carry out transactions offline and so one does not have to worry about having a mobile internet connection at all times.
Apart from these type of payment apps, there are also many mobile chat platforms that are trying to collaborate with UPI to add this as one of the methods of payment on their app interface. WhatsApp has already received a nod from the NCPI to partner with banks and allow UPI payments. The mobile chat platform is trying to acquire multi-bank partnerships for the purpose. One can make UPI-enabled payments on the Hike app.
What can you do with UPI?
- Send and receive money
- Raise collect requests
- Access different banks accounts with a single UPI app
- Load money into the UPI app
- Enables payments between people and merchants
- Pay utility bills
Advantages of UPI
- 24/7 access: The UPI app allows users to transfer funds at any time and from anywhere on all 365 days of the year, including on bank holidays. This is one of the most convenient and hassle-free methods of money transfer.
- Economical: UPI is one among the most economical ways of money transfer when compared to types of fund transfer methods.
- Easy and less time consuming: When it comes to UPI one does not have to provide a list of details such as beneficiary/payee account number, name, branch, IFSC code and other details. All you need is a VPA or a virtual address and one can easily send and receive money using this one piece of information without any hassle.
- Eliminates card-based fraud: UPI is a secure platform and hence one does not have to key in all card details or CVV number, etc. This is not only convenient but it is also a safe and secure payment interface.
- Immediate transfer: Unlike other fund transfer methods, one does not have to wait for the funds to be credited. One can make payments even during non-banking hours and the funds will be credited immediately on a real-time basis.
- One app, multiple accounts: One of the main advantages of the UPI platform is that it allows users to link all bank accounts in one platform and use whichever account is convenient.
How Different is Google Tez?
Google too has made its foray into the digital payments sector. The main difference in Tez is that it is customized for the local Indian population and comes in seven languages, including local languages such as Telugu, Tamil, Marathi, Kannada, Hindi, Gujarati, and Bengali. The Tez service is also compatible with most banks that have registered with the NCPI for UPI services. Tez is also compatible with the BHIM app. Tez also has a special fraud detection service for that added security feature.
Using Tez, one can do various financial transactions like paying bills, sending and receiving money, etc. Tez can be linked to bank accounts and is available for download.
The other feature about Tez is that you can pay users who are in your contact list. If the contact is also using Tez, then all you have to do is to search for their name and send money. There is no need for IFSC code, account number or adding the beneficiary/payee.
On the whole, the digital mobile payments sector in India is seeing high growth and there is also a lot of competition. UPI has seen a good growth trajectory in India and more and more merchant’s networks and banks are beginning to embrace this payment system. There are many mobile-based platforms that are now pondering over launching the UPI service.