Unified Payments Interface (UPI) is a system that brings several bank accounts and their functions into a single mobile application (of any bank associated with UPI). The inception of UPI was a significant catalyst in deepening India’s inclination towards cashless payments. UPI gateway has made online transactions more accessible, faster, and safer, ultimately making it the most reliable payment method. As per government data, transactions worth nearly 7,71,444.98 crore took place in India through UPI digital payments solutions in October this year. This is a clear indicator of India’s dependency on UPI as a payment method.
What are the benefits of UPI?
UPI as a payment platform offers a range of benefits to merchants and customers alike.
- Streamlined online transactions.
- Easier access with real-time transactions.
- Provide services to people who do not have credit/debit cards.
- Initiate online transactions anytime, anywhere.
- Resolve COD collection issues.
Owing to the above benefits, UPI has become popular among people and attracted massive attention from merchants. Therefore, having a UPI gateway such as Zaakpay is crucial for business growth.
How is UPI better than other digital payment platforms?
Easy to use
The process of money transfer has been made easier through UPI. To get started, all that a person has to do is set up a UPI ID on any suitable UPI application. In most cases, a UPI ID begins with the user’s mobile number followed by the ‘@’ symbol and ends with a simple code allocated to the application being used.
After the registration process is completed, one can send money directly from the mobile application to any UPI user. The need to remember the receiver’s bank account details or IFSC code is eliminated here as the UPI ID, being more user-friendly, is easier to remember. With Zaakpay’s UPI gateway, businesses can make the best use of this dynamism of UPI to convert more customers by offering an accessible payment mode.
Initiate transfers directly from the mobile application
One of the primary reasons UPI outshines other digital payment modes is because it’s usable directly from one’s smartphone. There’s no need to carry a physical card, as in the case of credit or debit cards. There’s no need to go through long and complicated log-in processes, as with net banking. Making a payment with UPI takes not more than five minutes.
By integrating a UPI gateway, the business can encourage faster payments from customers. When the customer selects the UPI payment option from the gateway, the application directs the user to payment authentication. On entering the MPIN successfully, the payment is through. Chances of converting a prospect to a lead increase drastically when the payment process is this convenient.
Scan to Pay
Scan to pay is another feature of UPI which has been very popular ever since its introduction. As is clear from the name, it enables paying just by scanning a QR code. QR codes do not even require entering the UPI ID and have almost eliminated digital wallets. The UPI ID of the receiver is encoded within the QR code for the sender’s UPI application to decode it by scanning.
This feature makes UPI more robust than other digital payment solutions. Merchants across India have been using this facility to convert more customers by simplifying the payment process. Using Zaakpay’s payment link service, merchants can generate direct QR codes for their businesses. Customers can pay directly by scanning the QR code with a UPI application.
Direct bank to bank transfer without any wallet as an intermediary
UPI application acts as a gate to the funds stored directly in the bank account. When making a payment, the funds get deducted directly from the payer’s bank account. In other forms of digital payments, funds must be first stored in a local wallet from where the actual transaction takes place. This is the case with mobile wallets, e-wallets, and most other digital payment solutions.
Since the transactions are bank to bank, customers have access to their money in their bank while making the payment. This makes UPI a suitable platform even for large transactions. Although regulatory authorities have put caps on individual transactions to keep frauds in check, it is still a preferred solution for online payments for large denominations. Furthermore, if the business sells products of higher value, having a UPI gateway is a must. Moreover, if customers have their entire bank balance at their disposal while purchasing, they are more likely to indulge in impulsive buying.
Even though UPI payments are made directly from the bank, they add a layer of security to it. When making a UPI payment, the customer doesn’t have to disclose the bank or card details. Only the UPI ID is needed. Moreover, since UPI is based on an application and not a website, it is difficult to hack without physical access to the user’s smartphone. Therefore, customers don’t have to worry about their card or bank details being stored this way. Accepting payments through UPI, thus, makes the customers feel more secure.
Whether it’s an e-commerce business or a retail shop, UPI has been deemed the right platform for evolving business requirements. However, to make full-fledged use of all that UPI digital payment solutions offer, merchants should sign up with a top-class gateway service such as Zaakpay. Zaakpay’s gateway and payment link services support accepting digital payments from all significant UPI applications in India.