UPI Payment: Types & How to Make UPI Payment?

UPI (Unified Payment Interface) is responsible for revolutionising banking services. This real-time payment system underwent a pilot launch on 11th April 2016 by Dr Raghuram G Rajan, the governor of RBI, Mumbai. Since its introduction, the popularity of UPI payment has been increasing exponentially amongst Gen Z and millennials. Keep reading to learn more.

What Is UPI Payment?

UPI is primarily a virtual debit card, where the system merges different bank accounts into a single application on your mobile. Therefore, with UPI payment, you can quickly transfer and receive money without repeatedly entering the IFSC code or your account number for each transaction.

You have access to the benefits of UPI payment 24 hours a day. You can pay your EMIs, utility bills, insurance etc., via this digital payment platform.

What Are the Types of UPI Payments?

You can make two types of transactions through UPI. Here they are:

P2P (Person to Person): When you are paying a bill on behalf of someone, and that person requires paying back to you, he/she can do it via UPI. This implies that you can make UPI payments to another person through his/her UPI ID.
P2M (Person to Merchant): This implies that you can pay at any store or shop by scanning a QR code or their UPI ID. This way, you can encourage cashless transactions and make faster payments.

What Applications Allow the Use of UPI Payments?

You have an option of conducting the UPI payment using the following applications:

Google Pay
BHIM App
PhonePe
Paytm
SBI pay
Bank of Baroda UPI

Which Banks Support the Use of UPI Payments?

The banks that support UPI payments are enlisted below:

State Bank of India
Axis Bank
Bank of Baroda
YES Bank
Bank of Maharashtra
HDFC Bank
ICICI Bank
Federal Bank
Union of Bank
Canara Bank
HSBC Bank
IDBI Bank
Kotak Mahindra Bank
Bandhan Bank
IDFC First Bank

How to Make UPI Payment?

Below are the steps to make a payment through UPI:

UPI Payment Without UPI ID

If you do not have a UPI ID, follow these steps to generate your UPI PIN, as it is essential for conducting a UPI payment from any of the applications.

Step 1: Create an account on any preferred application like PhonePe, Paytm, Google Pay, BHIM app, etc., by linking your bank account.

Step 2: Select the bank account which you want to link with the UPI application.

Step 3: After selecting the bank account, enter the “last 6 digits” along with your debit or ATM card’s expiry date.

Step 4: Enter the OTP you receive on your registered mobile number and generate a UPI-PIN to initiate the transaction.

UPI Payment With UPI ID

If you have a UPI ID, go through the following steps to proceed with the payment:

Step 1: Open the app and choose how you want to complete the payment. You have options like scanning a QR code, paying contacts, bank transfer etc.

Step 2: Enter the desired amount. You may add a note here as well.

Step 3: Select your bank.

Step 4: Enter the PIN and proceed with your payment.

If your receiver's application differs, you can ask for the UPI ID for making the transaction. You may also directly transfer the amount to their respective bank account via UPI. The recipient will receive the money immediately after the transaction.

What Are the Ways to Transfer and Receive Money Through UPI Payment?

Each UPI application has several ways to transfer and receive money through UPI payment. Therefore, you can share and receive money using the following methods:

By Entering Your Recipient’s Contact Number: For transferring money to your recipient in your contacts, enter their mobile number linked with the UPI Id. Enter the amount of money to be sent to your recipient and enter your UPI PIN. If someone wants to send you money, ask them to enter your registered mobile number and follow the same steps.
Bank Transfer: If you want to transfer or receive money to your recipient's bank account, the person should know the bank's name, account number, IFSC code and the account holder's name. Confirm and enter the amount you want to be transferred and received at the other end.
By Entering the UPI ID: You also have the option to enter the UPI ID of the recipient while transferring money. Likewise, you can share your UPI ID if you want to receive money. Open your respective UPI application and continue by entering the UPI ID. Transfer the amount of money by confirming the MPIN (Mobile Pin).
Scanning the QR Code: This is the quickest way of transferring or receiving money using the UPI application. Just scan the recipient's QR code and enter the amount you want to send. Confirm and proceed with the transaction and complete it in a split second.

Things to Remember While Making UPI Payment

The introduction and growth of UPI payment have been a pioneering success. However, you need to remember these things:

Verification of Your Recipient’s UPI ID: Before conducting the transaction, always check the UPI ID while sending and receiving money. You can verify the respective UPI ID by transferring a negligible or minimal amount.
Focus on Keeping Your Access to UPI Secure: Generate a strong pin for the payment procedure. Remember that you should only share your UPI address, linked mobile number and QR code. Never share your pin details with any other person, and constantly change it, given if anyone comes to know about it.
Always Utilise a Single UPI App: If you use more than 1 UPI app, it will increase the chances of unwanted transactions due to confusion. You should only create up to 1 UPI ID.
Cross-Check Recipient's Name: If any link pops up on your phone, only click on it if it is verified. These links can breach your consent and privacy. They can use your identity to log into your account and indulge in monetary theft.

If you are new to UPI payment, following the above steps will help you understand the tips and tricks. You can have multiple UPI Ids for a single bank account in different UPI applications. In this case, you must ensure your phone is secured. Therefore, remember to add a lock screen to your phone. Frequently change your phone's lock screen to make UPI as secure as possible.

FAQs About UPI Payment

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Do you require KYC for UPI transfer?

No, KYC is not mandatory for UPI payments. However, some financial institutions might ask you to get your KYC done to ensure extra protection.

How can I check my UPI transaction status?

You can check your UPI transaction status in the mobile payment application's 'balance and transfer history’ section. You can view the receiver’s name and the amount you sent too.

Is there any particular hour-based window within which we can make UPI payments?

You can conduct your UPI transactions at any hour of the day, which implies that you access this feature of real-time payment 24*7.

Will my account get blocked if I conduct the transaction by mistakenly entering the wrong Pin?

If you enter the wrong Pin for a frequent number of times, then your account will get blocked. However, if you have entered the Pin only once, you will not be able to conduct any transaction.

What if I lose my cell phone?

If you lose your cell phone, immediately block your phone number so that no one can conduct any transaction. Do not share your UPI Pin with any other person.