unified payment interface
How does Unified Payment Interface works?

Unified Payment Interface: Definition

UPI which is also abbreviated as Unified Payment Interface. This is a real-time digital payment system. If you do not understand the meaning of the payment system, then let me tell you that check and demand draft is also a kind of payment system in India. The only difference is that UPI is a digital payment system. Digital means that it works only on the Internet or electronic media. Now if you talk about real-time then you can think of it as a live match. Whatever transmission you take through UPI is completely live.

Unified payment interface has been developed by the National Payments Corporation of India. But the responsibility of regulating it is given to the Reserve Bank of India. Through UPI, you can transfer funds between two bank accounts on any mobile platform instantly.

The UPI Payment is an Immediate Payment Service, meaning that it instantly transfers real-time Inter-bank funds. The specific thing about the Immediate Payment Service is that it works 24*7.

In UPI, You do not need any intermediate service. For example, if you want to transfer or receive money through the mobile wallet, you have to first transfer the money to mobile wallet then you can transfer it to the respective account and vice versa. But in UPI it is not so, here if you want to transfer money to someone, it is a direct transfer from one bank account to another. That’s the beauty of instant fund transfer through UPI. So here you do not need any intermediate service.

How does UPI Payment works?

To Transfer money from one bank account to another bank account, you need a Virtual payment address. This virtual payment address is a unique ID that the bank gives you. This unique ID can be the combination of your Bank account number and IFS code or the combination of your Aadhaar Number and One time virtual ID or can be the combination of your Mobile number and a Mobile Money Identifier.

In spite of it, Whenever you make a transaction through the UPI, you will need an M-PIN. The full form of the M-PIN is the Mobile Banking Personal Identification Number. Now you might be thinking that where will I get the MPIN. When you are registering in the mobile payment interface system, you have to create a 6 digit M-PIN by yourself.

Note: You have to remember this MPIN for all your UPI transaction to take place.

Today, almost all the banks have launched their mobile APP for the transaction through the UPI. There are also some dedicated APPS for UPI, about which we will tell you in the next article.


Note: If you install any UPI App, your MPIN will be the same.

Read also: What is Tez App all you need to know about?

Tech writer extraordinaire and SEO maven. Wordsmithing since 2017, I geek out on apps, gadgets, and social networks. Let's tech-tango together!

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