UPI – Unified Payments Interface, is a new payment mechanism introduced by the RBI through the NPCI. It is aimed at supplanting existing fund transfer mechanisms such as NEFT and IMPS to enable easy and real time money exchange. UPI provides a unique identifier, called the Virtual Private Address (VPA) that enables consumers to send and receive funds directly in their bank account. UPI works on top of the IMPS transfer network.
What’s in it for the Merchants:
- Efficient – Highest success rates due to minimum hops resulting in better conversions GMVs
- Seamless – Single identifier to collect funds from the consumers
- Wide consumer base – Serves larger audience who doesn’t have Credit / Debit cards
- Cost effective – Lowers transaction cost compared to credit cards and net banking payment methods
What’s in it for Your Customers:
- Fast – Real time system, available 24 * 7; Faster checkouts with no OTP / Password hassles
- Easy to use – Eliminates the need of sharing Bank Account / Card details
- Reliable & Secure – Secure payments via 2 Factor Authentication using M-Pin
- Interoperability – Single mobile application for accessing different bank accounts
Here’s how to get started; Registration flow for your customers:
Download UPI enabled App and Sign-up with the mobile number registered with any bank account. UPI provides a unique identifier, called the Virtual Private Address (VPA) that enables consumers to send and receive funds directly in their bank account.
- Create a VPA (Virtual Payment Address) handle with name &/or email.
- “Virtual Payment Address“ is a unique identifier that can be mapped to your bank account. VPA is like an email address. example: rupesh@axisbank or 7838381133@ybl
- Link the VPA handle with any existing bank account. Set 4-6 digits M-Pin by giving debit card details. Registration is one-time process.
- Online Purchase
- Add item to be purchased in the merchant cart.
- Go to merchant checkout page and select Payment through UPI. (Both in case of Web checkout & Merchant based App)
- Provide only the Virtual ID (VPA) to the merchant.
- Mobile Authentication
- Customer receives a collect request on the mobile phone for approval for online purchase.
- Enter the secure M-Pin
- A confirmation of successful payment will be sent on the mobile phone.
What more can Customers do with the VPA:
UPI enables Person to Person (P2P) transactions where users can send and request funds from other users directly and the settlement is concluded between their respective bank accounts in real time.
- Login to the UPI app
- Choose “Send” option
- Select “Pay with Virtual Payment Address”
- Enter the VPA of the beneficiary and the amount. If you have multiple accounts/virtual payment addresses, you can choose the VPA you would like to debit
- Review the details filled and Click on Submit.
- Login to the UPI
- Choose “Receive” option
- Enter the VPA of the person and the amount. If you have multiple accounts/virtual payment addresses, you can choose the VPA you would like to credit
- Review the details filled
- Click on Submit to initiate a Collect payment via UPI. You will get notification when money is credited into your account
Customers can choose their existing VPA while linking the second bank account. While linking more than 1 account to a VPA, they can set a default account to send and default account to receive money. The default account can be changed from the “Manage Virtual Address” option. UPI services are available 24*7. There are no holiday restrictions on UPI transactions. Currently, the per-transaction cap is INR 100,000. This may change from time to time and is subject to the UPI guidelines.
Collect UPI Payments via CitrusPay’s ICP flow:
- Customer selects ‘UPI’, amongst other payment options on CitrusPay checkout.
- Customer enters VPA address and clicks ‘Pay Now’. CitrusPay will call bank’s API with amount, transaction id, VPA and other parameters. It will initiate a collect request. Users can view and manage saved UPI VPAs using a checkbox.
- Customer receives payment request through SMS on the mobile number registered with the VPA handle. The customer enters the M-Pin in his UPI App
- Once the M-pin is verified in the App and transaction is successful, ‘Payment Success’ message is displayed to the customer on the CitrusPay hosted checkout page.
Want to see how this whole experience works? Try it here. There’s more! UPI is being included in the Mobile SDKs as well. Soon, you can start accepting payments using UPI through your native mobile App.