Ever wonder if you could make quick payments without going through multiple lengthy verifications? From paying groceries and utility bills to recharging services to splitting bills, digital payment solutions have undoubtedly completely transformed the way we make transactions. But, out of so many options available, which one is safe and right for you?
Thanks to the rise of digital payments, BHIM UPI has been introduced to help you make instant transactions that are safe and secure and even save money while getting several cashback and rewards. This guide will comprehensively compare UPI and other payment methods and help you make a wise choice.
Understanding UPI and Its Variants
Unified Payments Interface, or UPI, is a payment system developed by the National Payments Corporation of India (NPCI). It allows users to make instant payments using UPI IDs linked to bank accounts via UPI-enabled mobile apps. While UPI has made transactions easy and instant, it eliminates the need to carry cash and cards everywhere.
Here are some of the variants of UPI:
- UPI Wallets: This is where users pre-load their funds in a digital wallet to make quick payments.
- UPI Lite: It is designed for users to make small-value daily transactions instantly without using a PIN.
UPI Vs Traditional Payment Methods
Here’s a comparison of newly introduced UPI versus the traditional payment methods that have been widely used for decades:
Cash
- Pros: Simple, accepted widely and ideal for making small payments.
- Cons: Security is limited and inconvenient when making large payments.
Debit/Credit Cards
- Pros: Convenient, eliminates the need to carry cash, is widely accepted, and users may get rewards and cashback.
- Cons: It’s not safe as the card may get stolen, and there are security risks for data leakage. Users may also have to pay transaction fees while using cards.
Net Banking:
- Pros: Safe and secure for making large payments online.
- Cons: Users are required to log in every time they make transactions, and the method is slower than BHIM UPI and not user-friendly.
UPI Vs Other Digital Payment Methods
Here’s a quick overview of other widely accepted digital payment methods:
Mobile Wallets
- Pros: It is best for making small payments and sometimes offers rewards and cashback.
- Cons: The service is limited to specific wallet providers, and merchant fees are also applicable.
QR Code
- Pros: The service is easy to use and eliminates the need for manual entry.
- Cons: QR codes can be a potential fraud as hackers can use their scanners to get users’ information.
Why Choose UPI?
Now that you have an idea of other payment methods, here are some reasons specifying why it is a preferred payment choice of Indians:
- Most UPI transactions are free or charge a minimal platform fee, making it a cost-effective solution.
- Make quick payments (large or small) and instantly transfer funds to your friends and family.
- Pay your utility bills, recharge your bills and settle other payments conveniently.
- When you create a unique UPI ID, it helps to eliminate the need to remember account details.
- Users can check transaction history anytime. Also, UPI-based transactions are safe and secure as they use multiple-factor authentication and other features to avoid data leakage.
How UPI Lite Enhances Payments Security?
While using trusted UPI Lite payment apps like Bajaj Finserv, users can add security features to their small transactions. Here’s how:
- Limited Transaction Value: Small, limited daily transactions prevent unauthorised and excessive withdrawals.
- Clean Bank Statements: UPI Lite transactions are recorded only in the app, so small payments are not included in the bank statements.
- Preloaded Wallet: Wallets for transactions via UPI Lite reduce the need for verification from the primary every time.
- Security Features: The service uses 2-factor authentication (a combination of biometrics and OTPs) to ensure safe and secure transactions.
Conclusion
UPI and its variants are perfect for users seeking a secure way to manage their transactions, as they offer unmatched convenience and efficiency. The Bajaj Finserv app is a one-stop platform that offers numerous financial services along with UPI, including the UPI Lite feature for making daily small payments such as groceries and utilities.
There is no doubt that UPI has been a game changer for digital payments and the preferred choice of millions due to its features and services. Make sure you make the most out of the technology and choose a platform that offers safety.
