UPI Full Form

Last Updated : Feb. 5, 2022, 1:26 p.m.

UPI stands for Unified Payments Interface. UPI or UPI full form i.e. Unified Payments Interface is an instant real-time payment system that helps to transfer cash instantly using a mobile interface between two bank accounts and UPI is also a single-window mobile payment system which was developed by the National Payments Corporation of India (NPCI). The main purpose to develop UPI was to eliminate the need to enter the bank account details or other sensitive information every time a customer tries to make a transaction. As a result, UPI is a concept that enables you to link your different bank accounts to a single mobile app.

Features and Benefits of UPI

You must go through the features and benefits of UPI and see how it can play a vital role to make your payments easy.

UPI Features

Below listed are some of the unique UPI features :

• IMPS (Immediate Payment Service), which is faster than NEFT , allows for instant money transactions and it also allows immediate money transactions through your mobile device 24*7 for 365 days, even on public holidays.
• Single mobile application for accessing various bank accounts.
• One tap authentication for seamless transactions.
• No need to enter any bank account or any other details as UPI uses virtual payment addresses for making transactions.
• The best possible alternative for cash transactions which gives the customers complete freedom to go cashless.
• Mobile Money Identifier or MMID enables UPI to use the IFSC code, account number, and phone number.
• Every transaction requires an OTP (One-Time Password) or a MPIN to authenticate the transaction.
• You can pay the merchant bills with a single UPI application.
• Counter payments, Utility bills as well as barcode scan payments can be done by accessing different bank accounts at the same time by using a single UPI application.
• In case of payment failure, you can raise your concern within the application.

UPI Benefits

Now you know the UPI Full Form but UPI also provides a variety of useful benefits. Users can check their account balances and transaction history, as well as send and receive money just by using a single mobile application. UPI offers a lot of other benefits as well that are not just limited to one user using it but it benefits the whole ecosystem. From banks to merchants to customers, each one has their own set of UPI benefits. Some of the benefits are mentioned below:

UPI Benefits to Banks

• Two factor authentication process by a single click.
• It is a single application for all the transactions and also Safe and secure which makes it beneficial for the banks.
• Unique ID is used to identify payments.

UPI Benefits to Merchants

• A single virtual platform collects all of the customer funds.
• The application keeps a record of all transactions.
• E-commerce transactions go through quickly.
• Unlike cash transactions It eliminates the need to round off payments because payments can be made in exact amounts.
• Payments to vendors and customers can also be made easily through the app.

UPI Benefits to Customers

• Customers who do not have credit or debit cards have access.
• You can access the application anytime any day.
• You can access your various bank accounts by using a single mobile application.
• Because UPI employs virtual addresses, there is no need to share credentials.
• Customers can report a problem within the application by using the built-in transaction failure feature.

How UPI Works?

You can use a mobile application to make payments while the money gets deducted through your bank account. UPI guarantees seamless transactions by using the already existing technologies such as Immediate Payment Services ( IMPS ) and Aadhaar Enabled Payment System (AEPS). UPI also supports all kinds of transactions like both pay and receive transactions, as well as over the counter and barcode payments. You can even pay for your online transactions like e-commerce purchases and online subscriptions using UPI.

You can carry out digital payments without using your credit or debit cards, or even without entering your bank account details, by using your single identification. This not only increases the security of critical data, but it also allows the consumers with bank accounts to conduct transactions easily just by using their smartphones.

How to Register & Generate PIN Using UPI?

After knowing the UPI full form, you must know how to register on UPI. In order to use the UPI application and make transactions, you first need to register and generate your PIN on the application. To complete a UPI transaction, you’ll need your UPI PIN. Below mentioned are the steps to register for UPI:

• Open the play store or app store and download any UPI application of your choice either a bank’s UPI application, or third-party UPI application from play store or app store.
• Once you’ve downloaded the application, create your profile by filling in information such as your name, Virtual Payment Address, password, UPI Pin, etc.
• To complete the registration process, link the bank account to this UPI application.

Another step after completing the registration for the UPI application, is to generate your UPI PIN. Here is the process to generate your UPI PIN:

• Once you’ve downloaded the application and completed the registration process, select the bank account by which you wish to make your UPI transactions.
• You can create your UPI PIN after selecting your bank account.
• As security concern, an OTP (One Time Password) is sent to the registered mobile number.
• To generate your UPI Pin then enter the received OTP.
• Each time you use the UPI app, you must enter your UPI PIN to make a transaction.

How to Make UPI Transactions?

One can make a lot of transactions using a single UPI mobile application and you can also send or receive money or can pay your bills using the mobile application. You can make payments through a mobile number or can even scan the merchant’s barcode to make the payment.

You know the full form of UPI but you must also see the classification of UPI into two categories that are mentioned below:

Money Transfer

• Open the UPI app on your smartphone that you previously registered with.
• Then the m-PIN or UPI Pin to access the application.
• Click on “Transfer/Send Money” option.
• Then enter the beneficiary’s VPA, account information or phone number.
• Then enter the amount that you wish to transfer.
• Enter the UPI Pin to authenticate the payment.
• Following the transaction, money is instantly transferred, and the user receives a notification on their mobile phone.

Bill Payment

• Log-in to the UPI application using your m-PIN
• Select the bill payment category that you need to pay the bill to and then enter your details and the bill amount would be generated.
• Enter your UPI PIN to authenticate the transaction.
• The biller receives the money immediately.
• You can also pay your water, electricity, DTH, broadband and gas bills.
• You can pay your Postpaid mobile bills or even do prepaid mobile recharges.

UPI Full Form FAQ’s