“Compound” refers to “Settle a matter by a money payment, instead of any other liability....
UPI is the latest innovation in Digital payment world. UPI refer to electronic consumer transactions, which include payments for goods and services that are made over the internet, mobile payments at point-of-sale (PoS) via smartphone applications (apps), and peer-to-peer transfers between private users.
UPI Payments a way of payment which is made through digital modes. In digital payments, payer and payee both use digital modes to send and receive money. It is also called electronic payment. In the digital payments, o hard cash is involved. All the transactions in digital payments are completed online. It is an instant and convenient way to make payments. Digital payments save you from long queues of ATMs and banks. Because, if you pay digitally, you won’t need to withdraw cash from your account which saves lots of time.
UPI or Unified payment Interface is a payment mode which is used to make fund transfers through the mobile app, and this payment system works on the mobile platform. One can transfer funds between two accounts using UPI apps. There is no requirement of giving the bank account details for the fund transfer through the UPI payment system. UPI is one of the most advanced methods of all the digital payments. Currently, this service is only available for Android phone users.
One needs to download a UPI app and create a VPA (Virtue Payment Address) or UPI ID. Every user of UPI app must have a unique ID which is known as VPA. There are many UPI apps available such as BHIM, SBI UPI app, HDFC UPI app, iMobile, Phone app, etc. It is not mandatory to use the UPI app from your bank to enjoy UPI service. One can download and use any UPI app.
By using VPA or IFSC and account number, UPI apps are a faster solution to send money. But they have some limitations also. If you do not have an android phone, you cannot use UPI app. Lack of stable internet connection can also cause trouble for these apps.
To send money through the UPI app, you have to go through these steps.
AEPSis an Aadhaar Enabled Payment System which uses the 12-digit unique Aadhaar identification number to allow bank-to-bank transactions at PoS (Point of Sale) machines. It means the money you pay will be deducted from your account and credited to the payee’s account directly. Customer needs only his or her Aadhaar number to pay to any merchant who needs to be linked to the bank account to use AEPS. Unlike cards and USSD, AEPS does not have any charges on transactions
AEPS services include balance inquiry, cash withdrawal, cash deposit, and Aadhaar to Aadhaar fund transfers. This system does not require a signature, bank account details or any password. It uses your fingerprint as a password. No one can forge your fingerprints. Thus it is the most secure digital payment mode.
USSD banking or *99# Banking is a mobile banking based digital payment mode. USSD Stands for Unstructured Supplementary Service Data based mobile banking.
One does not require to have a smartphone or internet connection to use USSD banking. One can easily use it with any standard feature phone. USSD banking is as easy as checking your mobile balance. One can use this service for many financial and non-financial operations such as checking balance, sending money, changing MPIN and getting MMID.The *99# code works as a bridge between your telecom operator’s server and your bank’s server. It uses your registered mobile number to connect to your bank account. Hence, dial *99# with your registered number only. USSD banking has a transaction limit of Rs. 5000 per day per customer. RBI has also set a maximum charge of Rs. 2.5 per operation.
Banks provide cards to their account holders. These have been the most used digital payment mode till now. Many of us use cards for transferring funds and making digital payments. Credit cards, debit cards, and prepaid cards are the main types of cards. One can also use Rupay debit card for digital payments.
Cards are one of the best modes when you pay at portals or E-commerce sites. But if we talk about paying to merchants it is not the most suitable way. It charges 0.75% – 2.0% on transactions. Also, you cannot use cards to pay if the merchant does not have a PoS (swipe) machine.
E-wallet or mobile wallet is the digital version of your physical wallet with more functionality. You can keep your money in an E-wallet and use it when needed. Use the E-wallets to recharge your phone, pay at various places and send money to your friends. One can use E-wallets to make payments if they have a smartphone and a stable internet connection. These E-Wallets also give additional cash back offers. Some of the most used E-wallets are State bank buddy, ICICI Pockets, Freecharge, Paytm, etc.
With the help of digital payment, it is an opportunity to bring social change.
Digital payments are more convenient than cash payments. You do not need to carry a lot of cash with you all the time. You can make digital payments in seconds. You will also have all your payments recorded automatically. We all love simplicity and ease. Hence, we can say that Digital payments are the future of fund transfer and money transactions.
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