After demonetization, digital transactions have seen a surge in popularity. This has led to mobile wallets as well as the Unified Payments Interface platform (UPI). After the demonetization, mobile wallets dominated the market. However, UPI has now overtaken ewallets in terms transaction value. UPI transactions have seen a significant increase in volume and a strong growth. The Immediate Payment Service platform is the payment system. It allows users to instantly transfer money from one account to another.
Why UPIs are better for mobile wallets than UPIs:
Simplicity Peer to peer transactions are much easier than mobile wallets. A wallet transaction involves multiple legs. This includes money being transferred from your bank account to the mobile device wallet, and then to the beneficiary. A UPI doesn’t require this. It’s easy to use and users can make large money transfers because it is linked with the bank account that is the primary source of funds.
High transaction limit A UPI payment has a higher limit than a mobile wallet. It allows customers to transfer INR 1 lakh per transaction, which is more than any mobile wallet available in the country.
Customers can add multiple bank account to one app. Users don’t need to use different banking apps to send or receive payments. This will help you save time and effort.
No KYC required Mobile wallets face a lot of challenges due to the mandatory KYC requirement for all users. The requirement for KYC was implemented in March 2019, and has a significant impact on the volume of transactions. The regulatory requirement for KYC has caused a decrease in e-wallet transactions, and volumes have also decreased. However, KYC is not required for UPI. It works just like any other online banking transaction.
There is no requirement to load wallets. UPI payments are possible from any bank account and you don’t need to load money to make a transaction. Mobile wallets, on the other hand, require that you first load your wallet and then make a payment. You will need to complete a KYC procedure in order to load your wallet.
UPI is better than mobile wallets when it comes to transaction amounts and transaction costs. You will not lose interest income as mobile wallets are prohibited from paying interest on balances. It is simpler and easier to use because there is no extra charge for making these transactions.
UPI is a mobile wallet that offers convenience and ease-of-use. You don’t need to worry about downloading the wallet or filling out the paperwork in order to make payments. With the introduction of UPIs, payment is now quick, easy and seamless.