All About Unified Payment Interface(UPI) | 2017

All You Need to Know About Unified Payment Interface

There are numerous ways to pay bills in the modern scenario. However, the traditional method
of cash payments was preferred till sometime back. Now, many things have come to change,
people can pay bills directly through banks or online portals. The popularity of online payment
made technological enthusiasts develop it into UPI or Unified Payment Interface. UPI makes
online payments even easier than it was allowing people to make transactions just through a
swipe on their smartphones. Here is all you need to know About Unified Payment Interface(UPI)

Facts About Unified Payment Interface

It is, however, important to have information about something before using it. Hence, here are
10 facts About Unified Payment Interface to make everyone more aware:
1. UPI is a payment system that makes it possible for two banks or accounts to be transacted
through a smartphone. Thus, there won’t be any need to stand in queues and wait for turns
2. To apply as a UPI user, one must create a virtual payment address and have it linked to
their bank account.
3. Sending money via UPI is very easy and fast, almost like sending messages. In just a few
taps, all types of bills can be paid.
4. With UPI, there are no holidays or non-working days. Therefore, people can make
transactions at any time of the day.
5. UPI also makes it possible for people to shop online even when they do not have debit or
credit cards at their disposal.
6. UPI is not limited to any particular area and covers transactions anywhere in the world.
People can send and receive money from any country in the world.
7. With UPI safety is also ensured as it generates a password that only the user has access to.
8. Life and death insurances can also be transacted with UPI.
9. Ticket booking for travels can be done with UPI.
10. The most exciting thing about it is that people do not need to worry about where they have
kept all their money.

About Unified Payment Interface and How does it work?

When the customer performs an e-commerce purchase online, using his virtual ID when using
UPI, a pop-up notification is received on his payment service provider (PSP) app to request a
confirmation of the payment. He simply has to enter his secure pin to authenticate the
purchase transaction and within seconds will receive a confirmation of a successful online
purchase from the merchant. The customer has to create his virtual ID as part of the
registration process with PSP.
When the customer has reached the payment section on the merchant site post, adding goods
to his shopping cart he has to select UPI as the payment mode. He is only required to enter his
virtual ID to proceed. When the transaction request hits the merchant’s server, it is
immediately passed on to the acquiring bank’s server where a UPI collect transaction is
initiated on the virtual ID shared by the customer from the merchant’s server.

This request is sent to the UPI server and using the customer’s virtual ID the transaction
request is sent towards his PSP app. A pop-up appears on the app screen to request for the
secured pin. The customer authenticates the transaction request and the transaction proceeds
to the UPI system where the actual account details are fetched up against the mapped virtual
This transaction is then pushed to the customer’s bank account, where the credentials are
validated and his account is debited. The confirmation is again returned to UPI servers and in
turn, it initiates a credit message to the merchant’s acquiring bank and the credit to the
merchant happens at that time.
Customers can use UPI in merchant establishments, online payments, utility bill and school
fees payments and even app-based taxi hailing services.
Hence, it is safe to say that UPI is the future of payments in the world.

Above is the detailed information About Unified Payment Interface


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About Shubham Kumar

Founder @StartupTalky. IIT KGP grad. Learner. Dedicated to the service of the startup Ecosystem. Love meeting people. Let's connect - [email protected]
  • Bangalore