As an instant real-time payment system developed by NPCI in India, UPI has broken records since its launch in 2016. Since this payment interface facilitates peer-to-merchant and peer-to-peer transactions, it has witnessed growth in terms of both value and number of transactions. The sharp jump in UPI transactions from 1336.93 million in June 2020 to 5862.75 million in June 2022 (Source: UPI Product Statistics) indicates its popularity amongst the masses in our country. However, many individuals and merchants still do not know how to use UPI, more particularly about the UPI ID.
If you, as a merchant, are looking for a one-stop guide about UPI ID, you’ve come to the right place. Let us help you understand UPI ID meaning and its usage in your daily life.
What is UPI ID & its meaning?
UPI ID is a unique identifier for each customer using the UPI interface to send or accept payments. At its core, it represents a Virtual Payment Address (VPA) that the sender needs to enter at the time of transferring money to the recipient’s account. You can create your unique UPI ID through your bank’s mobile application or other UPI-enabled digital payment apps.
Here are a few other things you should know about UPI ID:
- Having a unique UPI ID is mandatory for sending or receiving funds into your bank account.
- A UPI ID is independent of your personal details or bank account number.
- You can create distinct UPI IDs for each of your bank accounts and then use them wherever you want to send or accept payments online.
Format of UPI ID – Explained with example
Many individuals in India simply refer to their UPI IDs as a short form for their bank account numbers. Given below is the common format for UPI ID in India:
pqrs@bank;
Here,
- ‘pqrs’ represents either your first name, your email address, or phone number
- ‘bank’ represents the initials or shortened name of your bank (may or may not include any prefix or suffix)
Example: nouser-232@paytm
How to create a UPI ID?
You can create a UPI ID to register your bank account and mobile number via Bharat Interface for Money (BHIM) app or any other UPI-enabled payment app like Paytm. Follow the steps given below to proceed with the same:
Steps to create a UPI ID in BHIM app
- Download the BHIM app on your mobile device
- After selecting the preferred language and other prompts, proceed with verifying your phone number.
- Once you have completed the verification, select the preferred bank name from the given list
- The app will automatically fetch the bank account number and IFSC code for the accounts with which the given mobile number is registered
- Select the desired account to be linked in case the same mobile number is associated with more than one bank account
- Create a 4 or 6-digit UPI PINto proceed with sending or accepting payments online.
Recommended Read: Differences between UPI PIN, ATM PIN, and mPIN
Steps to create a UPI ID via the Paytm app
- Download or open the Paytm application
- Enter your mobile number and verify the same
- Select the bank name from the given list
** Ensure that the mobile number registered with your bank is the same as the one you entered in the previous step.
- Set UPI PIN using your debit card details
- Once your bank account is linked, you can proceed with making the first payment
Steps to create a UPI ID by dialing *99#
As a banking customer, you can also avail of ‘*99#’ service that has been launched to extend banking services to every Indian citizen. Here are the steps involved to create a UPI ID via this service:
- Call ‘*99#’ and select your preferred language
- Enter your bank name or the first four digits of the bank’s IFSC code
- Select your bank account
- Enter the last six digits of your debit card followed by its expiry date
- Set your UPI PIN
- Confirm your UPI PIN and it’s done!
How to find your UPI ID?
You can easily find UPI ID in any of the UPI-enabled apps installed on your mobile phone. Click on the main menu at the top left or right corner inside your app and check your profile to find your UPI ID.
How to change UPI ID?
You can easily change the UPI ID under the Settings menu inside your UPI app.
Steps to change UPI ID in BHIM app
- Tap on your profile inside the BHIM app
- Tap on the Settings option
- Select the option to edit UPI ID
- Make the necessary changes and then tap on the ‘Confirm’ button
How to use a UPI ID?
You can use your VPA or UPI ID to accept payments from your customers. It is much easier to ask for payments via UPI than to share your bank account details with them. Similarly, if you wish to send money to the distributors or other vendors, you can do so by simply entering their UPI ID to initiate a payment transfer.
If you want to integrate a UPI payment gateway into your business website or app, read this guide.
Benefits of accepting or sending UPI payments
Accepting payments from customers becomes a lot easier with UPI. Here are some of its benefits:
Secure payment transfer
UPI is backed by the NPCI, which enables you to exercise greater control over accepting and transferring funds. It also ensures safe transfer of funds without making you worry about losing the payment along the way.
Real-time payment settlement
When you accept payments via UPI IDs, it gets transferred to your bank account in real-time. The ease and convenience of transferring funds via UPI and timely settlement can be considered the reason behind its growing popularity.
No minimum transaction limit
There is no minimum transaction limit associated with accepting payments via UPI. It means you can receive payments as low as Rs.1 via your UPI ID. Unlike NEFT or RTGS, UPI does not ask for any transaction charge either.
Also Read: The Real Benefit of 0% MDR on UPI with Paytm Payment Gateway
