Smartwrap finance UPI Payments: Meaning, Importance And How Does It Work?

UPI Payments: Meaning, Importance And How Does It Work?

UPI is one of the most widely used payment modes that lets you migrate funds from one bank account to another within a few minutes. Since its inception, UPI and its payment systems and applications have seen a tremendous surge in the number of times people opt for this type of payment. Read on to learn more about the innumerable advantages of making UPI payments. 

  • Firstly, making payments with the help of a UPI payment app or a cashback app is very quick and normally, the payment gets done in just a few seconds.
  • Most banks allow UPI transactions via mobile apps, and the payments are also completely safe and secure; all the user needs to have is a SIM card of his mobile number in his mobile phone and is required to input the confidential MPIN every time. 
  • UPI payment service enables people to request access money from any other person, which is not the case with other modes of payment such as NEFT or IMPS. 
  • Payments can be facilitated anytime, anywhere. 
  • Also, it is completely free!

In simple terms, UPI payment refers to the enhanced version of traditional payment modes like NEFT, IMPS, etc. With the help of UPI payment, account holders easily transfer a specific amount from one bank account to another without incurring extra charges. For transacting via a reliable UPI cashback apps, an individual must create a UPI account and set a UPI PIN that refers to the password for confirming the transaction. 

To conduct transactions, you only need to get the receiver’s contact details from your phone book or enter his contact number to transfer money through UPI. 

The UPI payment mode has proved to be of great use for many people and financial institutions for several reasons, one of which is the hassle-free experience that it provides and the fact that it can be done in just a few clicks and seconds. 

The old-school method of transferring funds virtually needs the sender to give out the receiver’s details like the account number, account type, IFSC code, Bank name, and so on. Entering such details will then add the receiver in the form of a new payee to your account within 12 hours, and you can facilitate the transfer once this procedure is completed. 

UPI payments came to everyone’s rescue to let them get rid of this time-consuming and tedious process. Through this service, funds can be transferred easily from one account to another, with the help of just a specific UPI ID/contact details of the receiver, and receive cashback with certain purchases. Before making payments with UPI’s help, you are first required to register yourselves on the UPI Payment application, after which you need to follow a few other steps to get the transfers/payments done. 

It is important to note that money transfers can take place via UPI in either of the below-mentioned ways:

  • Choosing a contact/Entering the mobile number
  • Scanning a UPI QR code
  • Entering UPI ID
  • Entering details relating to Account Number and IFSC


Savings and making payments with the help of a trustworthy UPI app is free of charge, instantaneous and lets you conduct transactions around the clock. The exponential growth of cashless transactions is even further on the rise, thus becoming the most hassle-free payment method.

Related Posts