Why UPI is better than IMPS and NEFT.

 

The most exciting development in recent years is UPI. It dramatically altered the payment ecosystem. Everyone, regardless of size, now uses the UPI to make cashless payments. Paytm, Phonepe, Google Pay, SBI Pay, and more services are now used by millions of people including you and me. All of these mobile payment apps make use of the UPI payment mechanism. In this blog post, I would tell you UPI is better than IMPS and NEFT.

 

Free fund transfer

There have been instances when 5% of the total was charged for the money transfer. For making a payment to the merchant, Visa and Mastercard still continue to charge 1% to 2% of the total. While NEFT and IMPS are not expensive, but a modest transaction would pinch a little. However, UPI is the cheapest. Banks made it free due to the extremely low costs. Not a single penny is charged by the banks or other wallets. But let me tell you: using this payment method comes with a price. For the sole purpose of promoting UPI fund transfers banks, NPCI, and mobile app companies are bearing this cost. As a result, there might be some fees in the future. However, the UPI Fund transfer fee would undoubtedly be the least expensive. 

 

Useful for small transaction

You may have never paid Rs 10 or Rs 20 with a debit or credit card before UPI. Due to the high expense of card transactions, small business owners avoided them. However, UPI has altered the situation. Now that UPI payments are available, every retailer and street seller is ready to accept UPI payments. For both the shopkeeper and the customer, the transaction had been made simple and affordable. You will need to use the ATM rarely when you start using UPI. The UPI has greatly simplified merchant transactions.

 

One app many accounts

UPI is a revolutionary concept. I initially found it hard to accept that I could access all of my bank accounts in one place. It is made possible by the UPI. All of your bank accounts can be connected to a single UPI app. Therefore, you do not require various apps for various bank accounts. You can make payments from your bank accounts using one UPI app, which might not be from your bank.

You must select a default bank account, though. So that the default account number receives any payments made to your UPI ID.

 

No loss of interest

You put money into a mobile wallet in advance to pay for recharges, bills, purchases, etc. Therefore, there is no interest earned on money that is in a mobile wallet. You would lose Rs 500 of the interest if you deposited Rs 10000 in a mobile wallet for a month. You could have earned this amount if you had deposited in the bank. Since your money doesn't leave your bank account when you use the UPI, you don't lose this interest. At the time of the actual transaction, the money is taken from the account. The wallet is not in the middle as the money is transferred between accounts.

 

Conclusion- I have now explained the advantages of UPI. It is now your time to use this service right away. Get the best UPI app, sign up, and make the first transaction.