How does a UPI payment bank app work?

Online banking has been a big boon when it comes to making financial transactions. With strict rules on social contact in light of the pandemic, a UPI payment bank app has truly been a great help when it comes to clearing essential household bills online. But such apps started to come under the limelight long before the pandemic struck. People found these banking apps to be very convenient to use. 

For those who are interested in learning more about how these apps work, let us help you by starting from the basics. A UPI (Unified Payment Interface) permits the transfer of funds between two bank accounts using smartphones. In this method, you can only send and receive funds through your mobile device. There are no time restrictions, which means you can transfer funds through UPI 24/7. 

What does one need in order to use UPI?

All you need to use a UPI payment bank app is a bank account with a certified financial institution. Also, your financial institution should support the use of UPI. Most of the reputed banks permit their customers to use UPI bank apps, so you need not worry too much about this. 

Once you have verified this with your bank, the next thing you need to do is go to the Google PlayStore and download your bank’s UPI payment app.  People that are active in online banking mostly use money transfer apps and payment apps such as PhonePe, Paytm, Amazon Pay, Google Pay, and so on. Please keep in mind that your mobile number will have to be registered with your bank account before you go ahead and use any UPI payment bank app. 

How does one set up their UPI app?

Once you have installed the UPI payment bank app on your smartphone, the next step would be to add your bank from a list of banks. After you have found your bank on the list, your bank will then send you an OTP (one-time password) on the same mobile number in order to verify your account. Once you complete this verification, your virtual payment address will successfully get created. 

Now, let us come to the specifics of setting up your bank account on the bank app. 

Step 1: Choose your preferred language after opening the app for the first time.

Step 2: Sync the SIM card number which is registered with your bank account.

Step 3: Set up a four-digit login password for your UPI payment bank app. Some banks might have a six-digit login number.

Step 4: Link your bank account by providing the last six digits and the expiry date of your debit card and then set the UPI pin. 

And that’s it! Your account is now successfully registered and you can now make financial transactions using your UPI bank payment app. Also, it is not necessary that you only have one bank account linked to your UPI app. You can link multiple accounts and use anyone at your convenience! 

We hope that this article has been an informative read. All the best!