Due to revolutionization and digitisation, online banking has gained popularity. Here are some of the benefits that using UPI payment has:
- Immediate payment transaction
UPI transactions are seamless; you can complete these transactions within seconds, whereas other transactions like NEFT can take up to 12 hours for transactions to complete. UPI is the fastest way to transfer funds in the market. Moreover, you can make it from an instant account anywhere, at any time.
- It is free of cost
Although you may have to pay some fee for the fund’s transaction, in contrast, there are no hidden charges involved since UPI is entirely free of charge. Therefore, UPI has a massive advantage over everyday transactions as it can be beneficial for someone who has to do daily in and out transactions.
- All-in-one solution
If you have a different bank account in various banks, you need separate bank apps to transfer an amount from that account. In contrast, UPI can manage all your bank accounts in one place, and you can seamlessly transfer an amount from any account from a single platform. You have to open bank account if you need to register with UPI.
- Both ways transfer
UPI can do both transactions; you can transfer and collect money simultaneously, whereas, for a standard NEFT transaction, you can only move the amount, and collection transactions are impossible.
- More secure
Not everyone uses the card for payment; only some use their online banking accounts to make payments or through a banking application. Security issues prevent many people from using cashless payment methods. A Question of What if someone overlooks your PIN while you punch it at the terminal. What if the website steals your credit card data and uses it for international transactions. The UPI has minimised this concern. It is more secure than the present mode of transaction. In every transaction through the UPI, you do not have to give your bank account details. You will never enter your credit card number or CVV. You only provide a virtual payment address which won’t give any clue about your bank account.
- Zero loss on interest
In any mobile wallet, If you deposit money upfront to pay for a recharge or bill payment or shopping, it won’t earn any interest. If you deposit Rs. 10,000/- in a mobile wallet for a month, you will lose Rs. 33/- of interest. You would have earned this amount in the bank account.
You do not lose any interest in the UPI as your money does not leave your bank account unless you want. The amount gets debited from the account during your actual transaction. The wallet will not hinder, and the money gets transferred from one account to another directly.
- Rewards and cashback offers
Several UPI apps are in the market now, like Google pay. They provide some reward or cashback to retain customers. These factors make UPI a win-win situation for UPI users: faster, secured, free transactions, prizes, and cashback.