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Impact of UPI today
When digital payments were first introduced in the Indian economy, a vast majority of the people may have been sceptics. Cash, after all, was convenient, easy to hold in a pocket, and simply what everybody was used to. Plus, it has the advantage of being tangible, which often gives a sense of security to the owner of the money.
But with the advent of the Unified Payments Interface (UPI) - all of this changed. Even those who were once wary of accepting other forms of digital payments like credit and debit cards or bank transfers found UPI easy and convenient.
The many benefits of UPI only furthered its popularity. And as you saw in the previous chapter, the year-on-year growth of UPI transactions has been nothing short of unbelievable. In this chapter, we are going to take a closer look at the importance of UPI by discussing its impact on us today and the general benefits it offers.
The impact of UPI today
Gone are the days when you had to carry cash around in your wallet and constantly keep an eye on it when you are out and about. Or the days when you had to have the exact change necessary for a payment, or be compensated for the remaining amount with 1-rupee chocolates. UPI has changed all of this.
Today, the impact of UPI has become so widespread that even vendors in remote areas of India happily accept a Google Pay or a PhonePe transaction. You need not wait in long lines to withdraw cash at your local bank, or run from one Automatic Teller Machine to another to get the cash you need.
Now, with the Unified Payments Interface, all you need is a smartphone, a bank account and an internet connection. With this, you are all set to make all kinds of payments at the click of a button. Whether it is to pay for food at an eatery, refuel your vehicle, settle your utility bills or even make a quick purchase online, UPI has permeated every walk of life.
But that’s not all. You can even use the Unified Payments Interface to transfer funds from one of your bank accounts to another, or from your account to another person’s. The best part is that you can do all this from the comfort of your home - at any time of the day or night.
The benefits of UPI
UPI is one of the best solutions to have been introduced in recent years. If you have ever relaxed about the fact that you could just pay off all your bills from the comfort of your couch, we’re sure you’ll agree.
But to truly appreciate the impact and the importance of UPI today, we need to take a closer look at the many UPI benefits that have transformed payments for the better.
The biggest upside of using the Unified Payments Interface is that you need not worry about time or distance as a barrier. If your bill is due today, you can even make the payment at 11:59 PM and get it done on time, thereby avoiding the penalties linked with delayed payments. Plus, instant transfers also mean that you can save a ton of time each day. You no longer need to use your one day off at work waiting in line at the bank.
Useful for small payments
Other kinds of digital payments, such as credit cards or debit cards, are often not accepted for small transactions of Rs. 10 or Rs. 20. This is because they come with accompanying charges for the goods or service providers. Contrary to that, UPI payments are perfect for small payments because they are not expensive for the vendor at all. This makes UPI easy to adopt even for small store owners in tier 2 and tier 3 cities or towns.
Multiple accounts linked to a single application
If you have multiple bank accounts, you may no doubt have found it difficult to access all of them and keep track of the transactions therein. But then, UPI came along and made this impossible task easy and convenient for everybody. Today, with just a single app, you can link multiple accounts and make payments from any of them. You need to just choose a default bank account to receive payments.
Rewards and cashbacks
This may not be a very obvious advantage that underlines the importance of UPI, but if you are a regular UPI user, this is definitely something that you will look forward to. To encourage more people to use the Unified Payments Interface, UPI apps like Google Pay, Amazon Pay, SBI Pay, Phonepe and Paytm offer rewards and/or for using the UPI channel. There are also special rewards that some apps offer when you make a payment to a small business vendor.
Secure digital payments
Many people are apprehensive about using digital payments because of their concerns about security. UPI transactions put these worries to rest because the UPI ecosystem is highly secure. You only need to provide your UPI ID, which does not divulge any details about your bank account. Furthermore, your UPI PIN adds another layer of security to your digital payments via the Unified Payments Interface.
Now that you have seen all about the UPI revolution and the impact and importance of UPI in the country today, you may no doubt be eager to find out more about the top payment providers in India. That is exactly what the next chapter talks about.
A quick recap
- Today, the impact of UPI has become so widespread that even vendors in remote areas of India happily accept a Google Pay or a PhonePe transaction.
- The UPI benefits you can enjoy today include instant transfers, multiple accounts in one app, rewards, cashbacks and more.
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