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What is UPI? How It Helps in Online Transactions

Uniform Payments Interface is an Indian government-led system that allows a user to make online transactions using multiple bank accounts from a single Smartphone app.

There are several good reasons, ranging from easy money transfer to pay for online and offline shopping, to use the UPI app.

What is Uniform Payments Interface?

UPI, a.k.a. Uniform Payments Interface, is a system that facilitates users to access multiple bank accounts with a single mobile application. It combines merchant payments, numerous banking features and seamless fund routing to be accessed from a single place.

Several banks, including public and Payments Banks, have launched dedicated apps to allow users manage all their accounts from a single place. One important feature of UPI is Peer to Peer collect requesting. Scheduling is available for the same.

How does UPI app work?

Let’s understand UPI with an example, the Airtel bank UPI app. It is the Uniform Payments Interface for Airtel Payments Bank subscribers. First of all, you need to download the app,  Once you’ve downloaded the app, you can sync your other accounts and enjoy the benefits of Airtel payments bank UPI app.

There are different options for payment, transferring money, paying bills, etc. Suppose you need to transfer money to some bank account, then you need to first enter details of the payee, such as Bank name, IFSC code, and Payee name. Afterwards, you need to select the bank account from all accounts synced with the UPI app to make the payment.

Thus, it is simply a matter of a few clicks to do for any financial transaction.

Advantages of using UPI Payment App

Some of the most notable advantages of using a UPI app are: 

Inexpensive Overhead

NEFT is a popular form of fund transfer. It offers a feeble 2.5 rupees service charge for each transaction. Comparatively, UPI transfer costs only 50 paise or even less for making a fund transfer.

UPI fund transfer is an inexpensive way to complete instant money transfers for low amounts. Moreover, making online transactions with UPI doesn’t cost even a single paisa.

Go Cash-Free

Obviously, the UPI app allows you to carry on all your bank accounts in your pocket. Whether you need to send, receive or make a payment with a mobile phone, you’re just a few clicks away. It makes small transactions feasible. Hence, it is a great way to go cashless.


Whilst adding a bank account to the UPI app, you provide a virtual payment address and no information regarding your bank account. Hence, the UPI app offers more secure transactions than other popular payment apps.


The adoption rate of UPI payment apps is on the rise. As a consequence, banks and other financial services providers are launching distinct UPI apps with additional perks to ensure a better experience for their customers.

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