With the increase in the use of technology in our daily lives, there has also been an increase in UPI apps to make payments. These UPI apps enable cashless transactions to occur seamlessly, making it easy for people to carry out their financial exchanges. Moreover, during the pandemic, it helped to contain the virus by limiting physical currency and stopping the spread of the virus through contact.
However, users are increasingly concerned about the safety of UPI payments and UPI QR code scanners being used in our daily lives.
This article talks about QR payments and the safety of using UPI payments.
What are UPI payments?
The first thing that needs to be understood is the meaning of UPI payments. UPI stands for Unified Payments Interface, an interface that allows financial transactions between bank accounts through a single window. It means that you can make payments across banks without going through the hassle of changing interfaces. A virtual address of the payee and an application to facilitate the payment is all that is required.
Using a UPI payment method is simple, instantaneous and free of charge. Often, you can make payments simply through UPI QR code scanners provided by the payee. Moreover, the transactions can take place at any time of the day and all through the year. This makes it highly accessible and hence widely used by consumers today.
How safe are UPI payments?
- The level of convenience provided by UPI payments also raises suspicions of the bargain being too good to be true. Consumers are often sceptical of the safety offered by the UPI payment applications and doubt their credentials are being stolen and misused. This is the consequence of human nature, which pushes us to believe there is always a catch when everything runs well.
- Contrary to the idea, UPI payments are safer than most payment methods in our daily lives. This makes transactions easy as well as safe to use. This is because UPI accounts are set up primarily using two verification factors. One of them revolves around verifying the user’s credentials and confidential information like the PIN code.
- While replication of the physical aspect is easy, it is almost impossible to replicate the digital presence. Once the application is downloaded on the mobile phone, the consumer gets signed up for the UPI app. During the sign-up, a push notification is sent through the phone for verification. This enables the verification to happen without the possibility of having the OTP leaked. This process has to be repeated every time there is a change in the device.
- The additional security layer formed by UPI can be said to be the PIN created by the consumer. This PIN is made using the card details of the current bank account, which also has a registered mobile number. Therefore, the PIN can only be created once the user inputs their card details and verifies through an OTP sent to the mobile number registered with the bank. This PIN would always be required whenever a transaction is made. In other words, it means even if the phone is stolen, transactions cannot be made without the UPI PIN.
- Irrespective of QR payments or other modes of transactions, inputting the PIN is a mandatory requirement to be fulfilled. Therefore, transactions can take place only with your phone that has been registered with your UPI ID.
- The UPI platforms do not involve any third party organisation which has access to your accounts. It means the transactions occur directly between banks, and there is no third party involved in the process. This is one of the critical aspects which make UPI one of the safest. Furthermore, if both the sender and the receiver use the same UPI platform, the need for confidential bank credentials like the account number and the IFSC code is also removed. Not only does this enhance the security of the transaction, but it also makes the process faster and more efficient.
- With the advancement of science and technology, the use of UPI platforms has experienced a meteoric rise. With payment apps like Fave India, you can now earn cashback on every payment you make! It’s safe and secure. All you have to do is scan and pay from their app to avail exciting cashback offers!