Success So Far
All you need are a mobile phone and an account with one of the banks that has already launched its UPI app.
Set login ID and create a virtual address. Launch the app after installation and create the login ID and your virtual address.
Add your bank accounts. While banks have, and will launch, their separate UPI apps, they are interoperable. This means that you can add multiple bank accounts to a single bank’s UPI app.
Set your M-pin. As with conventional banking apps, set a unique M-pin, the safety feature that allows only you to use the app.
Start transacting. Do small transactions first to understand the app and see its success.
Mobile Wallets versus UPI
UPI App All that a user needs to do is to create a ‘virtual address’ to receive payments from and make payments to any other similar virtual address. This address can be your name or your phone number. There is no need to share your complete bank account details. The user need not remember the 15-digit bank account number or the 11-digit IFSC code (code used in banks to identify their branch) needed for internet banking.
The RBI has successfully completed a pilot run of the UPI with employee-customers and made it public in April 2016. At present, 21 banks are its members and some other banks are using member-banks’ platform for their customers. During the last five years, the organisation has grown multifold – from about 20 lakh transactions a day to approximately 200 lakh transactions now.
The UPI is targeting a major chunk of cash-based transactions, thereby also helping the government/ RBI in cleaning up of the black economy. Also, there are plans to introduce Aadhaar-enabled smartphones – if that happens, users will be able to self-authenticate and the need for entering the M-pin will be done away with. Mobile Wallet A wallet on your mobile phone (in the form of a mobile app) allows you to transfer money through a mobile phone to merchants and pay for services, utility bills, ticket bookings, etc. A user can transfer money into the mobile wallet (app) through a debit or credit card or via net banking. It works more like a prepaid card. However, transferring money from the bank account is the same process as making a payment via net banking or via card online. The mobile wallet does not allow you to collect/ receive funds.