5 minsOctober 24, 2017
Prime Minister, Mr Narendra Modi’s drive of a cash-less India is reaping fruits. Digital transactions have been on a rise, and especially those made with the Unified Payment Interface (UPI) channel.
In fact, those who initially resisted using internet banking, mobile banking; today are making an effort, learning how to transact the new-age way.
Technology has played a pivotal role in simplifying financial transactions. Following the advent of Credit and Debit Cards, digital wallets gained prominence. More recently, the introduction of the Unified Payment Interface (UPI) by the National Payments Corporation of India (NPCI) has been transformative in altering transaction methods.
The volume and value of UPI transactions at present is the highest since its launch in May 2016. As per the representative data released by the Reserve Bank of India (RBI), the aggregate value of UPI transactions in September 2017 stood at at
Rs 5,325 crore, 28% higher than the month before. The average ticket size of the UPI transaction was around Rs 3,010 in May 2017 vis-à-vis 2,998 in April 2017.
What’s the reason for so much interest?
UPI allows you to transfer and receive money round the clock without mentioning the details of your bank accounts, such as the account number and IFSC and instead uses a virtual ID for all transactions. It has emerged as one of the most advanced
method among all the digital payments due to following benefits:
- Cheapest way of Money transfer
- No need to give bank details beneficiary's UPI ID is enough
- More Secure
- Instant transfer
- UPI app is inter-operable across banks thus linking multiple accounts using one UPI based app
- Avail COD without paying cash in online shopping
- Cheaper alternative of POS machine
- Replacement of many digital wallets
Keeping in mind the above mentioned benefits Axis Bank launched Axis Pay UPI app, an easy to use app with which you can link any bank account to send or receive payments instantly
and securely, with just your name. Bank’s mobile banking app, Axis Mobile has also been enabled with UPI making it easy for existing customer to transact. Therefore be it your college fees, payment to your neighbourhood grocery store
or for your restaurant bills, the Axis UPI app ensures that life must go on.
How does the UPI App work?
UPI runs on Immediate Payment Service (IMPS) platform, and hence, the service is available 24X7. In India, this service is now available with 56 banks. The upper limit for fund transfers is Rs 1 lakh.
Currently, many banks have their own UPI app which have superseded other modes of payments -- at least as far as daily transactions are concerned thereby reducing the dependence on paper currency.
‘Axis Pay’ – Axis Bank’s UPI app – is easy to use, with which you can link any bank account to send or receive payments instantly and securely, with just your name. So, be it your child’s tuition
fees, payment to a wedding decorator, or to that contractor who needs to be paid for your house renovation etc. is now possible through ‘Axis Pay’. Besides, When you shop online, you can opt to use ‘Axis Pay’ instead
of using cash to pay on delivery. Your money will be transferred on a real-time basis with the UPI app.
How to get started using ‘Axis Pay’?
To begin using 'Axis Pay', follow these straightforward steps to manage your money transfers easily, anytime and anywhere.
Step #2: Connect your bank account
- Step #1: Install the UPI App
- This app is accessible for both Android and iOS users. The prerequisites are straightforward:
- A smartphone
- An internet connection
- A bank account linked to your current mobile number
Simply search for your bank's UPI app or choose one from a different bank and download it. Note that you are not restricted to the UPI app of the bank where you hold an account.
After installation, input your mobile number to verify it. If you are using the UPI app of your bank, your mobile number will automatically retrieve your banking details. Carefully review these details before continuing. You will then be prompted to create a six-digit secure passcode. This code is crucial for future logins to the app. Remember to keep this code confidential and do not share it with others. Following this, you can set up your Virtual Payment Address.
Step #3: Create a UPI ID and UPI Pin
Step #4: Send and Receive Money using UPI app
- The UPI ID can be as simple as your name or mobile number followed by bank address.
- So, for instance, if you are using the Axis Pay UPI App, your virtual ID can be "yourname@axisbank" or “yourmobilenumber@axisbank. Say if the mobile number is 9800000111, the UPI ID can also be like – 9800000111@axisbank.
- As mentioned before, , oneneed not be the bank’s customer to use its app. For example, if you want to use the UPI app of Axis Bank, you need not hold an account with the same bank. The UPI ID you create and the link of the bank
account will take care of it.
- Also it will ask you to create a UPI Pin which would be a unique Pin for each account you add to UPI app.
- Enter the debit card details of the account registered. This is only one time process, for further transaction one would only need UPI ID address.
- Unlike in the net banking option, you need not disclose any sensitive and difficult-to-remember information such as a 15-digit account number or IFSC . This virtual ID becomes your identity to anyone transacting with you, and the app
doesn't require more information to allow you to send and receive money. You can also pay bills, send money, and collect money using UPI App. Advanced options such as ‘scan and pay’ (QR Code Scan) is also available
–useful to pay your shopping bills.
- One receives a confirmation message like below once UPI ID address is created.
- Once registered, you can then start transferring – paying / receiving – money immediately, as oppose to net banking, where you have to wait until your payee is added to your list.
- For example, if you want to pay Rs 5,000/- to your friend, all you need is your UPI ID and your friend’s UPI ID. Thus both, the giver and receiver need to have a UPI app, plus their UPI ID.
- Axis UPI app additionally provides an option to send money using the beneficiary account number and IFSC .
- Here is how to transfer money:
- Sending Money…
- Log-in to your UPI enabled bank app using your M-PIN/ pass code;
- Go to send money and select the receiver using UPI ID (but it would be vital to confirm the UPI ID details of receiver or your money might get transferred to incorrect account);
- Enter the amount and send the money; and
- The money will be instantly credited to your friend’s account (as it is based on IMPS system).
Remember, the money can be transferred even over the weekends and bank holidays.
Likewise, you can even raise a collection request to the people who owe you money. For example, you had lent money to your friend and wish to collect the money from him today; you can log-in into your app and click on collect money option.
All you need is:
- UPI ID address of your friend;
- Raise a ‘collect money’ request;
- Your friend will receive a notification or a message;
- He / She can then click on ‘Respond to Collect Request’ and can either choose to pay now or later. If he / She wishes to pay later, it will remain as a pending transaction. Keep in mind, the payer also has an option to
decline your request.
By using the UPI app, you can even track your money across all your bank accounts and still make transactions (pay, receive, spend) through one single window at any given point of time.
To conclude, the UPI app has definitely brought in ease and convenience. You no longer have to refill your e-wallets, instead transact through this app and keep earning interest on your money parked in savings account. It is a hassle-free way to send and receive money.
Disclaimer: This article has been authored by PersonalFN, a Mumbai based Financial Planning and Mutual Fund research firm known for offering unbiased and honest opinion on investing. Axis bank doesn't influence any views of the author in any way. Axis Bank & PersonalFN shall not be responsible for any direct / indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information. Please consult your financial advisor before making any financial decision.