UPI or Wallet, a secure means of digital payment?


For the past six months, 36-year-old Devendra Mishra has been using the digital payment system. He finds digital payment systems convenient, but he is also concerned about the security of these tools and wants to know what is the difference between UPI, Paytm, Google-Pay and other digital payment systems and which is the best. . What trouble tells us is to develop the ability to preserve our existence and adopt the best option. It has been many years since digital payment technology has come and new players are constantly coming into the field with constant changes in technology and rules, which has caused confusion and concern among the users. There are several methods of online payment and fund transfer, such as credit cards, debit cards, digital banking, net banking, bank transfer modes, e-wallets, and Unified Payments Interface (UPI). All these options have their advantages.

Wallets and UPI

UPI is a real-time payment system, which can instantly transfer money to two bank accounts through a mobile platform. Through UPI, you can operate many bank accounts through a mobile application. In contrast, digital wallets like Paytm and GPay require money to be invested before digital transactions. All these have reduced the need for and dependence on cash as a medium for financial transactions. The utility of UPI is very high, that is why wallets also support it and recognize it as a medium of the transaction on their platforms.

The biggest advantage of UPI is that unlike wallets, which require a third-party app to keep your money, it involves the direct transfer of money from one bank to another. Financial transactions of almost all banks operate on UPI like Bhima (Bharat Interface for Money) app. With the arrival of Bhima, the circle is complete, as it also runs on a 2G mobile network, due to which people from remote and rural areas also have access to it. Through BHIM, UPI account holders can also do financial transactions with those who are not UPI account holders.

who's better?

Both UPI and wallets have their advantages and both are safe. But there are also fraudsters who take advantage of technology wrongly. In such a situation, one should always be cautious while using the digital payment route. Since not all applications support all modes of digital transactions, it is better to use different modes of payment. But the use of UPI and Bheem covers all modes of digital transactions. It is necessary to have money in your bank account for digital transactions. You have to register on these platforms and also take care of your financial transactions. It is also important that your smartphone supports these digital platforms. This makes your financial transactions quicker. You have to take many steps using internet banking.

You have to enter the cardholder's name, card number, and expiry date using a debit or credit card. Whereas, after entering your UPI ID in UPI, a request for payment arrives on the UPI app. You can approve the payment immediately by logging in and entering a PIN. The advantage of wallets is that they get loyalty benefits and discounts on direct transactions. If wallets are used smartly, then Devendra Mishra will benefit from this. But only after completing the KYC (No Your Customer) formality on wallets, do financial transactions.