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.