What Is India’s UPI E-commerce Platform?

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India has one of the most secure payment processors in the world known as the UPI. The Unified Payment Interface (UPI) integrates several banking services into a mobile app which allows monetary transfers between entities.  The process allows individuals and businesses to transfer money between bank accounts.

How Does the UPI System Work?

In order to make payments as smooth as possible, UPI integrates technologies such as Immediate Payment Service (IMPS) to service push (pay) and pull (receive) transactions, over-the-counter or barcode payments, and recurring payments.

Using a single identifier, mobile payments can be made without credit or debit cards, or banking account information. This makes sensitive information safer, and phone accounts can be linked to bank accounts

“Push” refers to the process of sending money through UPI.

• When a user logs in, he or she clicks the “Send Money/Payment” button and enters their PIN.
• Next, they input their virtual ID and the amount they desire to send
• The sender selects the account to which the funds will be transferred.

“Pull” defines receiving money through the system. Here are the steps of this process.

• The receiver selects the option to receive payment.
• They enter the virtual ID of the sender and the bank account to deposit the money into.
• A message is sent to the sender asking the sender to pay. They enter their UPI PIN, which authorizes the payment.

Once the transfer is done, both the sender and the receiver will receive a text message confirming the transaction.

Benefits of The UPI Integration

The Indian e-commerce platform creates a secure hub for payment processing. Both the merchant and the client are fully protected with almost no risks to their funds or sensitive data. These are some of the benefits of using the Unified Payment Interface.

• It eliminates the need for sharing banking or other sensitive information every time a transaction is made.
• Payments are made in real-time.
• It works using a mobile platform, with no need for a PC
• Easier for businesses and people to send money to each other across banks

The UPI platform has expanded to other payment gateways in India.