UPI Vs Other Online Payment Modes: Which Is Better?

Several digital payments and other transfer modes exist – debit cards, credit cards, Net Banking or Mobile Banking, e-wallets, and Unified Payments Interface or UPI payment. Whether it is about payments, transferring funds or splitting bills, UPI comes with many benefits. Let us have a glimpse. 

The ease of a virtual instant payment mode is that you can finish the entire procedure in a few minutes with some clicks. Lesser steps also imply lesser friction and fewer minutes to complete a transaction. When facilitating payments via Internet banking for merchant payments, you need to follow some steps, starting from logging in to your account with the help of a user ID and password and then giving out second-factor authentication or OTP. 

You must input the cardholder’s complete name, payment card number, and expiration date to use a debit or credit card. Through UPI, it becomes a lot easier; all you have to do is enter your UPI ID, which lands you on the payment gateway page for completing the payment request sent to your UPI application. Then, you can login and approve the payment by putting in your PIN. 

For peer-to-peer transactions, normal Netbanking transactions require adding a beneficiary to your account along with all the details about your bank account, such as bank account number, bank name and IFSC code. It may also take a few minutes to activate the beneficiary, whereas, in the case of UPI, you can transfer money without adding a beneficiary. 

While opting for merchant transactions, UPI transactions up to an amount of Rs. 2,000 does not lead to any payment charges, which may not always be possible in the case of other modes of payment. 

UPI payments occur directly from one account to another; no extra KYC is needed. There are no extra charges for conducting a UPI transaction, but it is a better alternative for transferring money. 

As Unified Payments Interfaces are going global, people have started to depend on online payments so much that many transactions were observed in this mode. Also, UPI is considered one of the quickest and preferred modes of making payments. 

Thanks to the rising adoption of smartphones and other technological advancements worldwide, the virtual payment ecosystem has transformed a lot in many countries. UPI enables customers to transfer account savings money instantly from one bank account to another via an application, allowing fast peer-to-peer or merchant transfer. 

UPI also comes with high security and convenience and is perfect for online shopping, giving online gift cards, paying bills and conducting peer transfers. Other advantages include real-time transactions, negligible transaction costs, and wide accessibility via banks. In this way, UPI offers users an undistinguished level of comfort, particularly in countries with robust online infrastructure. 


Imagine that you are traveling without carrying cash or cards; sounds great? Well, this has now become super possible with the help of your smartphone, and voila, you are ready! It is also very accessible for local shop owners who may not have card machines to accept payments. What’s more? The best part is that UPI payments can be done instantly, with zero charges.