Background

Unified Payments Interface (UPI)

Unified Payments Interface (UPI) is a system that powers multiple bank accounts into a single mobile application
(of any participating bank), merging several banking features, seamless fund routing & merchant payments into one
hood. It also caters to the Peer to Peer collect request which can be scheduled and paid as per requirement and
convenience.

With the above context in mind, NPCI conducted a pilot launch with 21 member banks. The pilot launch was on
11th April 2016 by Dr. Raghuram G Rajan, Governor, RBI at Mumbai. Banks have started to upload their UPI
enabled Apps on Google Play store from 25th August, 2016 onwards.

How is it unique?

Immediate money transfer through mobile device round the clock 24*7 and 365 days.

Single mobile application for accessing different bank accounts.

Single Click 2 Factor Authentication Aligned with the Regulatory guidelines, yet provides for a very
strong feature of seamless single click payment.

Virtual address of the customer for Pull & Push provides for incremental security with the customer not
required to enter the details such as Card no, Account number; IFSC etc.

Bill Sharing with friends.

Best answer to Cash on Delivery hassle, running to an ATM or rendering exact amount.

Merchant Payment with Single Application or In-App Payments.

Utility Bill Payments, Over the Counter Payments, Barcode (Scan and Pay) based payments.

Donations, Collections, Disbursements Scalable.

Raising Complaint from Mobile App directly.

Participants in UPI

Payer PSP

Payee PSP

Remitter Bank

Beneficiary Bank

NPCI

Bank Account holders

Merchants
UPI - Benefits to the Ecosystem participants

Benefits for banks:

Single click Two Factor authentication

Universal Application for transaction

Leveraging existing infrastructure

Safer, Secured and Innovative

Payment basis Single/ Unique Identifier

Enable seamless merchant transactions

Benefits for end Customers:

Round the clock availability

Single Application for accessing different bank accounts

Use of Virtual ID is more secure, no credential sharing

Single click authentication

Raise Complaint from Mobile App directly

Benefits for Merchants:

Seamless fund collection from customers - single identifiers

No risk of storing customers virtual address like in Cards

Tap customers not having credit/debit cards

Suitable for e-Com & m-Com transaction

Resolves the COD collection problem

Single click 2FA facility to the customer - seamless Pull

In-App Payments (IAP)

Registration in UPI enabled application

Steps for Registration:

User downloads the UPI application from the App Store/Banks website

User creates his/her profile by entering details like name, virtual id (payment address), password etc.

User goes to Add/Link/Manage Bank Account option and links the bank and account number with the
virtual id
Generating UPI PIN:

User selects the bank account from which he/she wants to initiate the transaction

User clicks one of the option

Performing a UPI Transaction:

PUSH sending money using virtual address

User logs in to UPI application

After successful login, user selects the option of Send Money/Payment

User enters beneficiarys/Payee virtual id, amount and selects account to be debited

User gets confirmation screen to review the payment details and clicks on Confirm

User now enters UPI PIN

User gets successful or failure message

PULL Requesting money:

User logs in to his banks UPI application

After successful login, user selects the option of collect money (request for payment)

User enters remitters/payers virtual id, amount and account to be credited

User gets confirmation screen to review the payment details and clicks on confirm

The payer will get the notification on his mobile for request money

Payer now clicks on the notification and opens his banks UPI app where he reviews payment request

Payer then decides to click on accept or decline

In case of accept payment, payer will enter UPI Pinto authorize the transaction

Transaction complete, payer gets successful or decline transaction notification

Payee/requester gets notification and SMS from bank for credit of his bank account
5 Best UPI Apps in India for Digital Payments

1. BHIM UPI App

The first UPI app in the list of best UPI apps is BHIM UPI app. This app is developed and released by NPCI. It is
perhaps the simplest and fastest UPI app available in the play store. The interface of the app is minimal with blue
icons and white background.

You can access each of its services with just a single click. Also, you can complete a transaction or change your
bank account with three to five clicks only. User experience with the app is very good. I havent faced any lag or
hiccups while making transactions.

BHIM UPI app has all the UPI features. These include sending or requesting money, changing or setting UPI PIN,
checking balance and generating QR codes etc. You can send money using VPA, mobile number or QR code of the
beneficiary. NPCI has also included IFSC and account number method with the last update.
2. PhonePe App

The PhonePe app is another feature rich UPI app. The app is not only a UPI appbut also a mobile wallet. It is the
second fastest grown UPI app after BHIM app. The app has all the UPI features as well as mobile wallet features.
When we talk about interface, it is one of the nicest looking UPI apps. Developers have chosen a nice color
combination to design the app. The app is not only good looking but also contains all must have features.

All other UPI apps are meant to send money only. But PhonePe is capable of recharging and paying bills using UPI.
The app works well on slow network connections also. It is available in 8 languages including English, Hindi,
Marathi, Bengali etc. You can send and request money, generate and scan QR code, set/change UPI PIN with the
app. You can also check your bank balance which is also a great feature of UPI. PhonePe app can send money using
a mobile number only. However, the beneficiary number must be registered with UPI.
3. eMpower by Canara bank

eMpower is the official UPI app from Canara Bank. The app has an amazing user interface. It lets you select a
profile picture of yourself. It shows on the top of the apps home screen. Below the picture, the app has its services
placed in form of a list. You can also swipe left for more options such as visiting and editing your profile, help and
settings.

eMpower is a fast and secure app with lots of features. You can use it for sending and requesting money. The app has
some additional methods for sending money. You can send money using not only virtual payment address but also
mobile number and MMID and aadhar number. Along with that, you can also send money using IFSC and account
number.

eMpower also allows many accounts in the app at one time. Just like all other UPI apps, you can add any bank
account with the app. Moreover, Canara Bank has planned to introduce more services to the app such as recharge
and bill payments. These coming soon services can be seen at the bottom of the apps screen. However, the app does
not give you the option to select the SIM while authorizing. Despite it uses your default SMS SIM for authorisation
message. The speed of the app is also slightly slow. The app has more authorization steps than other apps.
4. SBI Pay

SBI Pay is the standalone UPI app of State Bank of India. The app is secure and easy to use. The user interface of
the app is one of the simplest. User experience is also great as transactions can be completed with 3-4 steps only.
The icons for almost all main services are placed on its home screen. And other options can be accessed with a
single swipe from the left. It has all major UPI services comprising send and request money, balance inquiry and
set/change UPI PIN aka MPIN.

Unlike BHIM, you can add more than one bank accounts in SBI Pay. You can select the preferred account from
added accounts whereby you need not choose bank account every time. However, the app also has some drawbacks.
One of them is apps speed. The loading speed of the app is slower than a turtle. When I was testing the app, it took
around 1.5-2 minutes to launch on 4G network. Although the speed improved after the app was launched. Download
SBI Pay and enjoy its simplicity, ease and security.
5. Axis Pay

Axis Banks Axis Pay is a great UPI app. It has the cleanest interface among all the UPI apps. Developers have
placed only two options on its home screen. One for sending money and another for requesting money. All other
options are placed in the side panel which can be accessed by swiping from the left. It made the app slightly tougher
to use than other UPI apps. You have to swipe the side panel every time you want to use a service other than send
and request.

Axis Pay app is secured by an app 6 digit app password. The user experience is good as the app is fast enough to
provide you seamless transaction experience. However, the app has more steps than most of the other UPI apps
while sending money. You must need to add an account as a contact within the app before sending money.

Moreover, Axis Pay app does give you the option to generate a QR code. It can also pay using Bharat QR code.