UPI Payments For Banks: A Guide

Woman successfully transferred money online via electronic internet banking application on smartphone – financial technology or fintech concept

Before delving into the core of the topic, let us understand what this UPI is.

We have been listening to UPI, net banking, mobile banking, and many such FinTech innovative words in little less than one decade. Well, it has all become possible because of the rapid digital transformation. This has not only brought every purchase under one click but also under one umbrella. UPI that stands for Unified Payments Interface is a system where multiple bank accounts can be accessed in a single mobile application. The system has merged all the banking facilities, merchant payments, fund routing in one interface. The best part of this UPI payment system is its “Peer to Peer” request to collect which can be scheduled as and when required. Since its launch in the year 2016, banks have been uploading their UPI payment gateway-enabled application on Google Play Store or iStore.

UPI Payment System Is Unique In More Than One Way

UPI system is considered as one of the greatest offerings to the people when it is about offering a fully integrated, seamless, round-the-clock banking solution. It’s anywhere and anytime banking makes it more than an app. It is actually a bank in the pocket where all the services can be availed with ease.

The following are some of the uniqueness associated with the UPI payment system—

  • Unlike traditional banking where a person had to wait for the next morning for the bank to open, with UPI payment gateway, it’s 24*7 and 365 days banking. No matter at what time your closed one needs money, you can transfer the required amount with ease and in a single click.
  • If you have multiple accounts in the same bank or different accounts with two or more than two banks, then with this UPI system, you can easily keep track of all accounts. It is actually a single application offering access to different bank accounts.
  • Single Click 2 Factor Authentication makes the UPI payment interface not only reliable but also secured.
  • UPI system has brought ATM to pocket. Well, ironically, a person needs not walk with hard cash or look for ATMs for cash withdrawal. Transactions could be done easily by tendering the exact amount.
  • UPI solution providers are not only about money transfer- anytime and anywhere- using IFSC code but also can be used to make payments through Scan and Pay (QR code), bill payments, counter payments, collections, and donations, etc.

Banks And UPI Payment Solution Provider

For banks, it was not an easy task to adapt to the rapidly changing digital transformations. But they had to. UPI solution providers made sure that the banks stayed relevant with the evolving market. It was an ecosystem that the banks could not afford to give a miss because it would have put a question mark on their existence. With a highly secured encryption format, two-factor authentication method, etc, UPI payment is not at all easy to tamper with and thus making it highly secured. In addition to this, since different service providers like eCommerce websites and food delivery applications participate in UPI, banks had to switch to it proving their loyalty to their customers. This cloud technology has been beneficial in several ways.

The use of the UPI payment system has offered long-term benefits like flexibility, agility, scale, performance that outweigh the costs. This cloud-based approach has helped keep the cost down by enabling quicker de-provisioning and provisioning of systems. The UPI solution providers have left no stone unturned when it comes to developing a scalable architecture. It is not only about reliable, simplified payment and transfer options but also about interoperability in different retail payment systems. This UPI payment system is more than a digital wallet. Banks with this UPI payment gateway can redefine a different banking service for their customers- from brick banking to click banking without any hassles.

Conclusion

Banking services have changed a lot. Financial institutions are looking forward to applications that could ease and cater to a wide range of services to their customers. Finacus brings in a 360⁰ financial solution- from transferring money to facilitating bill payments just in one click. Call for a demo.

UPI Payment – Industry Insight- Finacus

Gone are the days when payments were made in cash, and one had to wait in long queues before he or she could withdraw some. UPI payment has brought about a revolution in the payment industry. It has helped enable seamless transactions across the globe from one bank to the other. Ever since the introduction of UPI, there was no looking back, and its success story continues to be a characteristic example. People are trying to explore the benefits of payments made through UPI and are spreading a good word about how it changed the way they made transactions. 

The Growth 

Of the numerous digital modes of payment available in the payment industry, UPI has become the most preferred payment method. More and more people are relying on it for making online transactions. Eventually, the number of transactions being made through cards has declined instantly over the last few years. Not just this, many customers switched from Cash, Cards, Prepaid Payment Instruments to UPI and are already experiencing its best benefits. Given that, there is no doubt in the fact that there is a surge in the number of UPI transactions being made on a regular basis. The growth of this payment method is pretty visible and continues two-fold with each passing day. 

Breaking Records 

The UPI solution providers have tasted success and are climbing high on the ladder ever since they have introduced UPI. The payment method continues to break records and achieve greater milestones. As each day is passing, the payment method is crossing unexpected figures and a majority of the people are now relying on this method for making transactions. The value of transactions made through the UPI method within a month is already in trillions. Furthermore, a plethora of banks are now a part of UPI, and the numbers seem to increase every month. 

The Role Of Regulators 

While certain factors are governing the growth of UPI, the role of regulators is the most crucial amongst them all. The regulators are contributing to the growth of UPI adoption by expanding the acceptance of the UPI payment system. The regulators are not only promoting the adoption of this method but also introducing the same to new payment areas. It is removing fees on UPI transactions and helping in the easy adoption of this method. To simply put, the regulators are the drivers of UPI adoption and have paved the way for the acceptance of this method by all. 

Increased Transaction Limits 

While there is a low transaction limit for the traditional methods, these limits have been doubled per day by the National Payments Corporation of India for all the verified merchants. UPI allows users to not only pay credit card bills but also the payments for brokerage, loan installments, and mutual funds. The increased transaction limits ensure that the users can pay the required amount for their loan or bills in one go without any hassles. 

The Features 

The UPI payment gateway has made payments easy for customers without a doubt but the bonus of security assurance while making transactions is what makes this method a preferable choice. One can make payments through UPI with the click of a button and within seconds. This payment gateway is safe & secure while allowing users to even request money. You can make payments at any time and file complaints as well in case of any trouble. One cannot ignore the added advantage of paying bills through reminders that the users get. 

  • Round the clock money transfer on all days of the year
  • Simplified merchant payments through a single device 
  • Easy bill sharing option 
  • Handling multiple bank accounts through single application 
  • Raising a complaint for your issue is easy 
  • The VPA or the virtual payment address is the only requirement. 

Final Thoughts 

There is a lot of scope of UPI shortly and it is already paving way for digital platforms of the next generation. The gateway is providing better information and any bank interested in the same may request a demo of FinUPI to wisely take the decision. 

Why UPI is Much Better Than a Mobile Wallet

A person who is about to use an online payment system will go for a Unified payment interface but what about the seniors in the online payment system, will they go for UPI or wallet money? According to recent research, UPI will grow to take up about 59 % of payment transactions by 2025. It is not surprising that 2.3 billion transactions were made using UPI as of February this year. This is clear proof that UPI is dethroning other forms of online payment transactions wallets and digital cards. What is the reason for this shift and how is the UPI payment system better than wallets? Let us find the answers in this post.

What is a mobile wallet and UPI?

Like the name says it all, a mobile wallet is a digital form of wallet in which one can store money and use it to purchase goods and services. One can install their favorite app and enter their details and money can be added to the wallet.

The Unified Payment interface on the other hand allows fund transfer between banks via smartphone without having to enter card details or adding money every time a purchase is made. UPI allows direct transfer of money between accounts without entering the account details of the beneficiary.

Simple to use

The main reason for UPI’s pick-up is that it is easy to use. Peer-to-peer transactions don’t require multiple steps. While a mobile wallet, on the other hand, involves multiple legs like adding money to the wallet from the bank account and then transferring it to the beneficiary. This can be easy for the new generation of smartphone users but not for everyone.

Identity of account

In the case of a mobile wallet or e-wallet, a mobile number acts as the entity of identification for the user’s account. The identity of the sender and receiver can be confirmed before the transaction by the wallet application. Contrary to the wallet, UPI payment uses a virtual payment address.

Improved adoption

Most mobile wallet companies opt for the UPI platform. This paints a picture of UPI’s popularity. Daily, the consumer uses different methods for different transactions. For instance, a person will use UPI to provide a salary while the same person may use the wallet to pay for fuel. With the launch of UPI, top providers like Google launched their apps and paved the way for increased use of UPI. The diversification of UPI helped people address the skepticism they had about e-wallets.

No KYC

Another great obstacle that e-wallets users face is the compulsory requirement of KYC for all customers. As the regulatory requirement began in March, the value of e-wallet transactions fell by 30 percent. On the other hand, UPI doesn’t require KYC as of now. Though a large population of wallet users has completed their KYC, it remains to be a challenge.

Interoperability

The interoperability of mobile wallets remains one of the major constraints. The sender and receiver should be registered with the same wallet app for the wallet-to-wallet transfer. For instance, if the sender has a Paytm wallet, the receiver should also have a Paytm wallet to receive money. Contrarily, UPI supports interoperability irrespective of the banks both have.

Benefits:

  1. Immediate money transfer through mobile device around the clock 24*7 & 365 days.
  2. Merchant payments with a single application.
  3. Utility Bill Payment, over the counter payment, Barcode (scan and pay) based payments.
  4. Donations, Collections, Disbursements scalable.
  5. Seamless single click payment.
  6. Raising complaints from mobile applications directly.
  7. Virtual address of the customer for pull and push provides for incremental security with the customer not required to enter the details such as card no, A/C no, ISFC, etc.

UPI supports Non – Financial transaction also:

  1. It is beneficial to Banks, Individuals as well as Merchants. 

Finacus UPI solution

Finacus provides a top-notch UPI platform with an API interface. It also connects UPI with the universal mobile interface. Our UPI solution is filled with features that will benefit the organization and the customer. Presently 46 Banks are using our UPI platform and we process 5.5 crore transactions per month.

Get your UPI interface today from Finacus, the best UPI solution provider to extend your banking service to the next level. Please ask for a demo experience of how well the UPI solution works.

5 Features of UPI 2.0

A unified payment interface is a real-time payment system. This system helps to transfer funds instantly between two banks, and you can do this with the help of your mobile phones. The launch of UPI was in August 2016. Ever since its launch, the face of digital payments has changed vigorously. Today UPI is one of the most preferred mode of payment.

A unified payment interface has undoubtedly simplified the digital payment ecosystem. This is even continually evolving to simplify even more and provide more benefits to the people. With the launch of UPI2.0, you will now be able to do a lot more than ever before. It comes with some new cool features that can take the digital ecosystem a step ahead. Read on more to learn about its unique features.

Critical features of UPI 2.0

Given below are all the new key features of UPOI 2.0.

One time mandate

This is one of the best features of the UPI payment system. With this, the customers can pre-authorize a Debit transaction from their linked bank account later. This UPI can be used in the scenarios where the money is to be transferred on a future date. You can schedule your payments while the money can be transferred later. The mandates are created with one-time book functionality. The customers can pre-authorize a transaction and can pay. In the case of the merchant payments or the service, this acts as an assurance to both the customer and the merchant.

Two-factor authentication

This is one of the security features that come into effect during the transaction process. While registering on UPI, the user will get an option to set an MPIN via mobile PIN. The MPIN is a 4 or 6 digit number set up while registering on the UPI app.

Generating it is an easy process. You can develop it by just clicking on the create or generate MPIN tab and entering your debit card details. In the transactions, the MPIN plays a significant role and is used to authenticate a transaction. Don’t worry if you forget the MPIN. You can change it if you forget it by using the same create or generate MPIN tab.

For Lggin MPIN is required, for transactions TPIN is required.

TPIN is 4 or 6 digits

Invoice in the inbox

When a collect request was is sent, one could only verify the amount being paid and make the UPI payment post entering the UPI PIN. This was done earlier. Now proper prior to making payments, the customers can check the invoice that is being paid via a link and thereby verify the transaction details before they pay for the same. This function is available for the invoices to the verified merchants. The customers will now get to view the bill in the UPI app. Also, they can verify the details and pay the invoice.

  • Linking of overdraft account

The customers can now link their overdraft account to UPI in addition to the current and savings account. This feature gives customers a digital channel to access their overdraft account. With this instant linking of overdraft account in the UPI payment gateway is also possible. Customers can now enjoy all the benefits associated with the overdraft account.

  • Signed intent and QR

 If the customer is making payment through scanning QR or the new intent, they will get the additional security in signed QR or intent.

FINACUS offers the FinUPI: Unified Payment Interface solution that is like a wallet but is more than just a wallet. Our solutions is having scalable architecture and have been developed, keeping in mind today’s security challenges. Request a demo for more information.

How UPI is Driving India’s Shift from Cash to Digital Payments

The economy of India was dominated by the use of cash half a decade back. There were only a few online payment methods such as National Electronic Funds Transfer (NEFT), and Real-Time Gross Settlement (RTGS). However, the tables turned with the birth of the vision for cashless India. The Reserve Bank of India wanted to make the existing payments system strong and streamline the settlement system with simpler and safer digital payment methods. A huge revolution occurred in the economy of India with the development of the UPI payments system- a real time payments platform.

An overview of the unified payments system

The UPI payment system was developed & is regulated by the National Payments Corporation of India (NPCI). The ulterior motive if this collaboration was cashless economy driven digital payments.

The UPI payment system synced perfectly with the increased use of smartphones. It is a mobile-based payments system allowing instant transfer or collection of funds between two accounts or two banks. Once you have registered your account with UPI, you need not go through the hassle of typing account number and other bank details every time you make some transaction. You can download any of the UPI apps from the play store and log in using your respective mobile number registered with the bank. You have to set a UPI pin, which is to be during every transaction.

They are used for both Peer-to-Peer (P2P) and Peer-to-Merchant (P2M) transactions. It can also be used for various value-added non-financial transactions like checking real-time balance and history of transactions.

What is the reason for traction among the masses?

The interoperability of the payments system and its ease of use interface make it popular and stand out apart from other payment solutions. The portable nature of the bank adds to the popularity of the real-time payment solution. This means that you can link your bank account to a UPI app provided by another bank or any app such as Google Pay. Also if a user has multiple bank accounts, they can link to a single UPI app. This drives easy payment from one account to another without entering different account numbers each time. When convenience is the key, its popularity cannot be questioned.

The simplicity of transactions is achieved by the use of a virtual payment address. The VPA searches and identifies themselves with another consumer without providing the bank account details. The VPA also helps in lowering the risks of fraud.

A wide array of features has paved the way for such huge popularity of the UPI solution. Apart from being a robust payments system for personal transactions, UPI offers great benefits for businesses. Merchants can use their mobile as a tool for the acceptance of payments. This brings down the cost of transactions compared to the traditional system like Point of Sale (POS) and QR code-based payments. The upgraded version of UPI offered benefits to the merchants such as pre-authorize a transaction, overdraft accounts on UPI, and stronger verification.

Unified Payment Interface Solution

We at finacus provide the best Unified Payment Interface (UPI) platform with an API interface and mobile interface for consumers. It helps in addressing today’s digital transaction challenges with a simple interface.

Bottom line

With about three forth merchants using UPI solutions, it is time for you to adopt a robust UPI platform. Know more about our solution FinUPI. Ask for a Demo Now.