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United Payment Interface Presented by : Utkarsh Sinh (15je001127) IIT(ISM) Dhanbad 1 Department of Electronics Engineering
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Utk upi 15je001127

Apr 11, 2017

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Utkarsh Sinh
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United Payment Interface

Presented by : Utkarsh Sinh (15je001127) IIT(ISM) Dhanbad

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Department of Electronics Engineering

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Content What is UPI ?What are the requirements to use UPI app ?What is VPA (Virtual Payment Address) ?Who is behind UPI ?How does UPI work ?How UPI is a better method of fund transfer ? How secure is UPI ?How to make online payments through UPI ?Why UPI is better than E-Wallets ?

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IntroductionOf late, you've probably been hearing a lot of jargon flying about money transfers - terms like UPI, NPCI, IMPS, among others. There's been a lot of excitement about new UPI apps such like Axis Banks Axis Pay, ICICI's Pockets ,SBIs pay andFlipkarts PhonePe, but what do these apps do? I am here to help and make sense of all these terms.Ever since its launched in Jan 2016, we regularly get questions like What is UPI, How does UPI work, How would it change the way I handle payments in business, etc. In this presentation, I will try to explain this new payment method in detail by answering a few questions.3

What is UPI ?

"Unified Payment Interface" (UPI) enables all bank account holders (of banks participating in UPI) to send and receive money from their smartphones with a single identifier (the virtual payments address) without entering any additional bank account information.

The Unified Payment Interface (UPI) can be thought of like an email ID for your money. It will be an unique identifier that your bank uses to transfer money and make payments using the IMPS (Immediate Payments Service)4

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What is Virtual Payment Address (VPA) ?The Virtual Payment Address or VPA is an address given to the user of UPI payment system to transfer fund. BENEFITSYou do not give bank account number to receive money.It is easy to remember than the bank account number and IFSC.To be more secure, you can change the it whenever you suspect.You can get VPA of your choice.

RULESYou can have manyvirtual payment addressesYou can change it whenever you wishNo two VPA would bethesameYou can link many accounts with one VPA but you have to set an account as the default.You cant choose the suffix of the VPA. It is fixed by the bank.

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Who is behind UPI ?Unified Payment Interface is an initiative by National Payments Corporation of Indias (NPCI), set up with the support of the Reserve Bank of India and Indian Banks Association (IBA). The NCPI operates the Rupay payments infrastructure that like Visa and MasterCard allows different banks to interconnect and transfer funds.

IMPS (Immediate Payments Service) is also an initiative of NPCI. UPI is the advanced version of IMPS.7

How does UPI work ?

How UPI is a better method of fund transfer ?

The new wayof money transfer, The UPI has many benefits over the existing payment methods. Because of its obvious benefits, the experts consider it a revolutionary innovation. In RBI governor Raghuram Rajans word, The UPI is WhatsApp moment for banking.UPI is one of the mostadvanced method among all thedigital payments.9

How secure is UPI?Nilekani said the security is fool-proof as the transaction will happen in a highly encrypted format. Already NPCIs IMPS network handles more than Rs.8,000 crore worth of transactions a day, which will exponentially increase with the use of mobile phones.

2 Factor authentication similar to OTP will be there as its mandated by RBI. In this case, MPIN instead of OTP will be used.

Download a UPI app of any bankRegister with your account details and create a virtual IDOne time processProvide only your virtual ID to the merchantGo to payment options and select Payment through UPIAdd the item to be purchased to your cartYou will receive a pop-up window on your phones UPI app requesting your online purchaseEnter the secure pinA confirmation of successful payment will be sent on your phone Registration Online PurchaseMobile AuthenticationHow to make online payments through UPI?

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Why UPI is better than E-Wallets ?E-WalletsTransactions limited to Rs 10,000, lot of people still not sure of its security and ease of use.You need to load funds in the e-wallets regularly.If you have Paytm or FreeCharge in your phone and want to pay using it but the merchant or seller does not have it, you cannot use it.Wallets are privately ownedUPIEasier way for transactions, one-time ID creation and good to go, banking limit goes up to Rs 1 lakhIt is connected to your bank account, so it need not be refilled with money.On the other hand UPI is centralized. It can be used across banks and merchants.Whereas UPI is a govt. initiative by the NPCI controlled by RBI12

Final Thoughts13UPI is a great step in right direction and its is set to become an efficient alternative to mobile wallets and make cashless payments faster, easier and smoother for millions of people in India. It is said that UPI will prove to be milestone in the transformation of modern India.It has potential to make micro payments cashless which will benefit both buyers and sellers.

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#digitalpaymentsThe UPI payment system is revolutionary. It makes the non-cash payment a very easy affair. Moreover, the NPCI is also coming with new features of UPI which has more flexibility, easy and wide reach.We should adopt this method of payment because it also reduces the black economy.

References

https://thetechpert.com/upi-unified-payments-interface/http://gadgets.ndtv.com/apps/features/what-is-upi-the-apps-charges-and-everything-else-you-should-know-1452664https://myinvestmentideas.com/2016/09/what-is-a-unified-payment-interface-upi-and-how-it-works/https://www.thequint.com/upi-how-will-it-make-life-simpler-for-youhttp://www.npci.org.in/UPI_FAQs.aspxhttp://www.profitbooks.net/upi-unified-payment-interface/http://www.livemint.com/The-unified-payments-interface-will-be-available-for-transac.htmlhttps://upipayments.co.in/upi-benefits/

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Any Questions ? 16

Thank You !

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