Wednesday, July 8, 2020
Home News Reports UPI – all you need to know; how to set up and transact (step-wise...

UPI – all you need to know; how to set up and transact (step-wise guide with pics)

Also Read

Aditya (reviewero)
You can follow author on Twitter here https://twitter.com/reviewero

Everyone is talking of UPI payments and how it changes everything in the world of digital payments. It is being touted as the major driver that will take us to being a cashless economy, along with mobile wallets.

For most of us it remains that elusive genie that will make all our payment wishes come true IF ONLY we knew how to rub the lamp the right way. Welcome to OpIndia’s simple no BS guide to UPI, where we tell you how to get started with UPI in under 10 minutes.

Let’s go!

So what is UPI?

UPI is short for Unified Payment Interface. It’s the netbanking transfer for the mobile first generation. Quick to setup, quick to transfer money to another account. No bank account number needed, no logging in, no waiting, and no IFSC code. All you need to know is a username (called VPA or Virtual Private Address) to send money to anyone within seconds.

Why was UPI needed?

Netbanking wasn’t as efficient and quick. Netbanking was made for the internet; to make it secure, the extra steps required made the whole process of transferring money cumbersome, even with IMPS. A Mobile first solution like UPI takes away a lot of friction as we will see. It’s available 24×7, including on holidays.

Say, you need to buy from your local shop or local supermarket. You don’t want to take note of their bank details, add and confirm them as beneficiary, and then log into your netbanking or mobile banking app each time you buy something, where you would need to wait for OTP and provide information like those grid numbers on the back of your debit card. That’s just too much of work when all you have bought is a box of chips and some cold drinks!

How it’s different from mobile wallets?

Mobile wallets are apps that hold your money. With a Wallet you add money from your bank account using net banking or bank cards. The UPI app transfers money from one bank account directly into other just like netbanking IMPS transfer, there is no need for 3rd part apps to hold the money anymore.

So will UPI kill mobile wallets?

Wallets provide an added layer of security and also have a lot of 3rd party integrations that make it easier to pay your bills and make payments at stores or cab services. For example, you can add money to PayTM wallet and use it to pay bills, recharge phone, shop their own marketplace or other online merchants and pay for your Uber rides. UPI apps and ecosystem will take some time to get there, but once it does the charm of wallet apps will certainly go down.

Mobile wallets won’t just vanish, and they will need to innovate and make them more attractive than UPI payments, which currently they are due to ease of payments and lots of offers that they have. Most probably wallets will add UPI as one of the options for payment and not rival them.

What can I do with UPI now?

For now, you can use UPI to pay for everything you have been using netbanking transfers for. You’ll need the receiver’s VPA, and if they don’t have it, you’ll have to ask them to install a UPI app first.

(Update: UPI transfers can take place even on feature phones where no VPA or UPI app will be needed – as is explained here – but the scope of this article is about currently available apps on smartphones)

But since it’s so easy and useful and removes the need for wallet apps for certain transactions, you will soon see everyone using it for things like paying for cabs, paying at the local store, or splitting their expenses.

How much we can do with it will depend on how fast we can all move to UPI payments. For now, play with it and tell your friends about this new cool way to split your weekend bills.

Can I start using UPI immediately?

If you have a bank account, and if you have enabled netbanking and mobile banking i.e. if you have generated an MPIN (usually 4 to 6 digit long depending on the bank) for your account, you are ready to use UPI. Remember that your phone number, where you are going to install this app, must be linked to at least one such bank account.

How do I get this UPI app?

There are about 28 different apps on Google Play (Android apps store) alone. You can search for “Your_Bankname UPI” (e.g. ICICI UPI) to find a UPI app by your bank. Remember that you should be downloading the official app of your bank.

(Update: Unfortunately, not many official apps are available for iOS yet. TrupayIndia app can be used to receive money so far. So Apple users will have to wait till banks come out with iOS versions)

But the beauty of UPI is that you don’t need to use your own bank’s apps if they have not yet come up with one. You can use any of those official and trusted apps that show up when you search for UPI apps.

In this post we will focus on UPI app by Flipkart called PhonePe, which is in partnership with Yes Bank, and Axis Bank’s UPI Pay app, which I think are the easiest to use so far of all apps (Pockets by ICICI comes a close third but is super feature rich, so try that too).

Once you download a UPI app, it will ask you to verify your phone number by sending and receiving SMS. In the next step you provide basic details like name, email, and set a 4 digit Pin.

How do I transact with UPI?

Step 1: Download and install a UPI app

Pick any of the apps when you search for UPI apps in app stores. I recommend PhonePe app, Axis Pay UPI app, or Pockets by ICICI.

This article will guide you with PhonePe app, but other apps will have mostly similar steps for registration and transaction.

Various UPI apps in Google Play

Step 2: Launch app and register yourself

First verify your number. UPI system populates your bank account details and authenticates using phone number linked with your bank account. So install on phone with the number linked to your bank account only.

Your mobile number is linked with the UPI app

After number is verified, provide some basic details like Name and Email, and set a 4 digit password (Pin). If you ever forget your Pin, which you need for logging into the UPI app every time you use it, you’ll need access to your email to recover it.

Create your UPI account

Step 3: Add a virtual password address aka UPI Username

Just like your email, your UPI virtual password address (VPA) is your UPI ID which others will use to send you money. It’s of the form myupi@ybl or yurupi@icici (no .com needed). You can create up to 3 VPAs on PhonePe app and cannot delete them later yet, so be careful with your selection.

Swipe left to right to bring up the menu and press your number to go to your profile.

UPI profile on Phonepe app

Find “Add VPA” option and add a VPA. Pick something easy to remember and spell out. Doesn’t have to be your name. For example, I could create one as myupi@ybl

VPA is not case sensitive so MyUPI@ybl is same as myupi@ybl

Add VPA to your UPI app

Step 4: Add a bank account

It’s easy. Swipe left to right. Go to Bank Accounts menu and press Add Bank Account button. Then select your bank. Your bank account linked with your phone number will be added without you needing to enter anything such as account number. You can add more than one account if you have multiple bank accounts linked to the same number.

It will also show you if an MPIN exists for that bank account. If not, you can create one by going to your banking app or website (some apps allow you to generate that without leaving the UPI app. You may need to enter your Debit Card details). If you have forgotten your bank MPIN, you can reset it from within the app:

Add your bank account to the UPI app

And that’s it, with your bank account linked and VPA created, you are set to send and receive payments now. Let’s do a quick transaction.

Your first transaction

Step 1: Go to app home and click Send

UPI app home screen

Step 2: Go to VPAs and click Add VPA Contact

If you don’t have any one whose VPA you know, you can try sending Re 1 testupi@sbi – a working VPA we have created for testing purpose. You can also download other UPI apps like Pockets by ICICI and Axis Pay, create new VPAs, and send yourself money from other apps.

After you enter a VPA, you have to click verify button and it will verify if VPA is valid and also show registered name of the recipient (not shown in picture below for privacy reasons).

Add a VPA contact

Step 3: Enter amount you’d like to send

When it asks you if you’d like to send money now, accept ‘Yes’ and move to the ‘send’ screen. Type the amount you want to send and from which linked bank account. As you can see from the screen you can even choose to send Re 1.

Enter amount that you have to send

You will be taken to a screen by NPCI (National Payments Corporation of India) within the UPI app, where you will need to enter MPIN of the bank account linked to that VPA.

And done!

Confirmation of the UPI payment

All this takes less than a minute.

Receiving money is even easier (it always is!). Remember that the money will come to the bank account that is associated as the default account with your VPA (that you provide someone for receiving the money).

Lots of UPI apps will let you pay bills and split bills with friends too. Some apps also have a QR code scan where you can send or accept money just by showing someone your QR code or scanning their QR code without having to enter VPAs.

Following is the a test QR code we created that is associated with testupi@sbi VPA. You can try transferring Re 1 by scanning it (we tested it on PhonePe app and it worked):

QR code for testing UPI payments

So in future, your local store could ask you to just scan their QR code to pay them directly from your bank account to theirs without any worries of looking for cash.

Remember that with UPI, currently your transaction value must be within 1 lakh rupees within India. For higher amount, you will have to use netbanking or traditional banking.

So try out these apps and let us know which ones you find easier to use. Still got questions? Ask away in the comments section below.

  Support Us  

Whether NDTV or 'The Wire', they never have to worry about funds. In name of saving democracy, they get money from various sources. We need your support to fight them. Please contribute whatever you can afford

Aditya (reviewero)
You can follow author on Twitter here https://twitter.com/reviewero

Trending now

Maharashtra: Chief Minister sits at home while Leader of Opposition tours the state extensively amid coronavirus outbreak

Despite being most affected state in the coronavirus pandemic, CM Uddhav Thackeray has hardly been on the ground taking control of situation.

The Cabal Strategizes: Tahir Hussain behind Delhi Riots

Tahir Hussain was the one to put the money to sinister use by mobilizing Delhi Riots in February 2020

Govt to probe violations by Sonia Gandhi headed Rajiv Gandhi Foundation and others, Home Ministry sets up committee

The committee will coordinate probe into violation of various legal provisions of PMLA, Income Tax Act, FCRA etc by these foundations. Special Director of Enforcement Directorate will head the committee.

US announces visa restrictions on Chinese Communist Party and People’s Republic of China officials over Tibet access

US has announced visa restrictions on Chinese officials over access to foreigners to Tibet. Bats for 'meaningful autonomy' for the Tibetan people.

Mumbai: Dr Baba Saheb Ambedkar’s house vandalised

The house of Dr Baba Saheb Ambedkar in Mumbai was vandalised by unknown miscreants on Tuesday night. Police has launched a probe.

Uttar Pradesh: Vikas Dubey spotted in a Faridabad hotel, hours later his aide Amar Dubey killed in police encounter

Amar Dubey, a close aide of Vikas Dubey, was an accused in the Kanpur attack on policemen in which eight cops were killed and several others were injured.

Recently Popular

Australian surfer Carmen Greentree abducted and raped for 2 months in a houseboat in Kashmir in 2004, pressurised to convert to Islam

Carmen Greentree has penned a book titled "A Dangerous Pursuit of Happiness" narrating her abduction and rape in Kashmir.

The dark, disturbing world of mean and hateful ‘sly’ Bollywood insider gossip featuring Rajeev Masand, PinkVilla and others

Following Sushant Singh Rajput's suicide, prominent film journalists and critics were accused of writing vile 'blinds' aka unverified, vile gossip.

Gold smuggling scandal rocks Kerala, CMO’s links with main accused Swapna Suresh under scrutiny

30 kg of smuggled gold inside baggage marked for UAE Consulate seized in Kerala. CMO's involvement with main accused Swapna Suresh alleged.

In defence of Rahul Gandhi and Priyanka Vadra, and no, this is not satire

After spending 6 years trying to orchestrate the "coming of age of Rahul Gandhi", there are sections within the Left ecosystem that are visibly frustrated with him.

Ahead of the release of Mahesh Bhatt’s Sadak 2, clips of him praising Islamist preacher Zakir Naik goes viral

"We, as Indians, owe it to our brother (Zakir Naik) who is national pride, (and) a prized treasure," Bhatt was heard as saying.

Delhi HC lifts gag order against media and victims in #MeToo sexual harassment cases against News Laundry investor Mahesh Murthy

Lifting gag order in sexual harassment cases against Mahesh Murthy, Delhi HC said that defendants have freedom of speech

Maharashtra: Chief Minister sits at home while Leader of Opposition tours the state extensively amid coronavirus outbreak

Despite being most affected state in the coronavirus pandemic, CM Uddhav Thackeray has hardly been on the ground taking control of situation.

The Cabal Strategizes: Tahir Hussain behind Delhi Riots

Tahir Hussain was the one to put the money to sinister use by mobilizing Delhi Riots in February 2020

Payal Rohatgi’s Twitter account suspended, the actress says she is being targeted by ‘liberals and extremists’

Payal Rohatgi has stated that her efforts to share facts has been projected in a bad light by liberals and extremists who control Twitter.

Delhi riots: Chargesheet links Rajdhani School owner Faisal Farooque with Nizamuddin Markaz, says he was in touch with Maulana Saad’s associate

The crime branch has stated that Faisal Farooque was a regular attendee at Nizamuddin Markaz and had close ties with Maulana Saad's confidante Abdul Aleem.

Pakistanis and Kashmiri separatists hail terrorist Burhan Wani on his death anniversary, vow to ‘resist India’s occupation’ of Kashmir

In a fierce battle, Burhan Wani was eliminated by security forces on 8th July 2016 in the Kokernag area of the Anantnag district.

Govt to probe violations by Sonia Gandhi headed Rajiv Gandhi Foundation and others, Home Ministry sets up committee

The committee will coordinate probe into violation of various legal provisions of PMLA, Income Tax Act, FCRA etc by these foundations. Special Director of Enforcement Directorate will head the committee.

Academic loss due to coronavirus: Course load of CBSE curriculum reduced, chapters on ‘secularism’, ‘citizenship’ deleted. Read details

The decision to drop such topics were made after the direction of the HRD ministry which asked the CBSE to reduce the syllabus for classes 9 to 12 by 30 per cent to compensate for the academic loss caused by the coronavirus pandemic and the subsequent closure of schools.

US announces visa restrictions on Chinese Communist Party and People’s Republic of China officials over Tibet access

US has announced visa restrictions on Chinese officials over access to foreigners to Tibet. Bats for 'meaningful autonomy' for the Tibetan people.

Latest updates and important links about COVID-19 coronavirus

Live statistics and tracking of news related to COVID-19 coronavirus with focus on India.

Connect with us

235,141FansLike
400,479FollowersFollow
271,000SubscribersSubscribe