UPI is the new buzzword in the world of cashless transactions. Earlier consumer option was limited to net banking & mobile wallets for digital transactions. Now with UPI, users can get both the convenience of mobile wallets & the security of internet banking in one place. In this post we are sharing the webinar and detailed steps on how you can use India’s new age payment apps.
Watch Webinar Recording:
Going cashless with BHIM & USSD
You can listen to our webinar session on using the BHIM & USSD apps:
UPI or Unified Payments Interface is an instant payment system developed by the National Payments Corporation of India (NPCI). UPI is built over the IMPS infrastructure and allows you to instantly transfer money between any two parties’ bank accounts. The three-factor authentication makes UPI more secure than wallets.
What do You need to use UPI?
All you need is a phone and a mobile number linked or registered with your bank account to use UPI apps. In the case of BHIM app, you need to install the app from Google Play store & create a VPA for UPI on your account.
(VPA)Virtual Payment Address is an Address which uniquely identifies a person’s bank a/c. For instance, the Payment Address for BHIM customers is in the format xyz@upi. You can just share your Payment Address with anyone to receive payments. There is no need for bank account number/ IFSC code, etc. You can also send money to anyone by using their Payment Address. On creating your VPA, you will be able to access all the transactional options on the app.
Using UPI Apps Offline
You can use UPI apps even without any app or internet connection with USSD. This allows you to transfer money directly from one bank account to another with a simple feature phone. To launch NUUP, you need to dial *99#.
(USSD)Unstructured Supplementary Service Data, sometimes referred to as “Quick Codes” or “Feature codes”, is a protocol used by GSM cellular telephones to communicate with the service provider’s computers. USSD can be used for WAP browsing, prepaid callback service, mobile-money services, location-based content services, menu-based information services, and as part of configuring the phone on the network.
Sending & Receiving Money with UPI
UPI enables users to send & receive money through mobile numbers. Users can even send requests for payments and reverse a payment if required. Money can be even sent to other non-UPI supported banks using MMID
(MMID) Mobile Money Identifier is a 7 digit number of a bank customer. This number is used when you try to send or receive money using the IMPS method. Every bank account has only one MMID. This MMID would be unique to the bank account. Along with the mobile number, MMID identifies a bank account. Different MMID’s can be linked to same Mobile Number.
Other options for mobile transactions include MPS.
IMPS is an Immediate Payment Service. It is launched in 2010 by the Indian government and is facilitated by NPCI. As the name suggests, it completes transactions immediately. It is a service which allows you to make payments using your mobile number. It uses the mobile number or Aadhaar number to connect to bank accounts and complete payments. Hence, it is a secure method for transferring funds. The services of IMPS are available 24X7 and even on holidays.
NUUP Payments (*99# )
NUUP stands for National Unified USSD Platform. It is an innovative service developed by NPCI and launched by the Indian government in 2014. The service allows the banks and telecom service providers to work together seamlessly. The services of NUUP are based on the USSD method.
Advantages of NUUP:
- Works on all phones including Feature phones, Android, iOS, Windows, Blackberry.
- No Internet required.
- Seamless transaction from one bank account to another.
- No-cost for the transactions.
- No need to manage multiple wallets and lock money in non-interest earning accounts.
Limitations of NUUP:
- The mobile network provider may charge the user for invoking the USSD sessions.
- Transaction limits are set at Rs. 5000/- for 1 transaction.
- Relatively slow in adoption among masses. It needs massive awareness drive to educate people to adopt it.
How do NUUP Payments over USSD work?
This is a step-by-step guide for launching, setting up & using the NUUP app.
A) How to launch NUUP app on your phone
Dial *99# on your phone (Any phone like Smartphone or the old feature phone can be used)
B) How to set up your account on NUUP
Step 1: On launching the app by dialing *99#, You get a welcome screen to choose the language of your choice. Currently, it is available in English & Hindi. The support for more regional languages will be introduced soon.
Step 2: Next, you get the option to link your account with the below bank details:
You can enter these details to verify your account.
1) Bank Name.
2) First 4 letters of IFS code,
3) 3 letter Bank Short name, (This is defined in UPI website and also available in the respective Bank’s website)
4) 2 digit numeric code (This is defined in UPI website and present in respective Bank website)
Step 3: If the details that you enter matches with the bank account linked with your mobile number, then you get the message for setting the pin. The account number can be selected and the pin can be set. In case you have multiple accounts in the same bank, you get the option to choose the respective account that you want to link.
Step 4: To re-launch or open the app, dial *99# and you will get the app menu with the below options:
- Send Money
- Request Money
- Check Balance
- My Profile
- Pending Requests
- UPI PIN
Step 5: The first step is to test your UPI PIN. So, select the option 7 for UPI PIN.This will give you the following options. The first option will enable you to set the pin.
- Set/Forgot PIN
- Change PIN
Step 6: Here, select the option 1 to set the PIN and it will prompt for the last 6 digits of your Debit card number along with the Expiry Date. Enter these details carefully. Once validated, you will be prompted to set the PIN again. You have to enter the PIN twice to confirm/ verify your account. Now, you are now all set to make your first cashless transaction with NUUP.
C)How to conduct cashless transactions with NUUP
All the below transaction options will be available after you set your account & launch the app by dialing *99#
1) Sending Money: Launch the app by dialing *99#. This will take you to the main menu with all the options mentioned in Step 4, under the account set up. Click on option 1 to Send money to someone. You get the following sub-options immediately under Send Money:
- Mobile Number
- Payment Address
- Saved Beneficiary
- IFSC, Account Number
- MMID, mobile number
You can choose any of the following options to send money directly to the bank accounts you wish to transfer money. On selecting the option, you will be prompted to enter the relevant details and the amount that you want to send. You have to enter your PIN once again to complete the transaction.
2) Receiving Money: Launch the app by dialing *99#. This will take you to the main menu with all the options mentioned in Step 4, under the account set up. Click on option 2 to request money from someone. You have the option to request money from a mobile number or a payment address.
3) Check Balance: Launch the app by dialing *99#. From this main menu, select option 3 from to check the cash balance of your linked bank account.
4) How to update profile details on NUUP: On launching the app by dialing *99#, you will get the main menu. Select option 4 from the main menu to update the following details on your profile:
- Change Bank account: Allows you to change the bank account and link another account. The steps will be similar to linking a Bank account for the first time.
- Change Language: Allows you to change the language.
- My Details: Shows the Basic user details like Name, Bank Account, Payments address, etc
- Payment Address: Shows the Payment address for your account and option to change the Primary Payment address to something else.
- Manage Beneficiary: Here you get options to Add, Delete and View the Beneficiaries.
5) Pending Requests: This option under the main menu shows the details if someone has requested any payment from you and which are pending to be honored. You can choose to Pay or decline the request.
6). My Transactions: This option allows you to check the last 5 transactions that you have done (Both Sending and Requesting of money).
The BHIM App
Bharat Interface for Money (BHIM) is an app that lets users make simple, quick and easy payments using UPI. Direct Bank to bank payments can be done and money can be collected over mobile phones or payment addresses.
Advantages Of BHIM app:
- It is a very simple and lightweight app with a choice of 35 listed banks.
- Money transfers happen in a few seconds. It is available 24/7 for all 365 days.
- It works in all Android versions above 4.1.
- It interfaces to all your bank accounts at a single place.
- All transactions done over *99# are available on the BHIM app too.
- There is no need to memorize account number or share it with everyone.
- Money can be sent to non-UPI supported banks using IFSC & MMID codes.
Limitations Of BHIM app:
- Transaction limits are set at Rs. 10000/- for 1 transaction and max of Rs. 20000/- in a day.
- Right now it is only available for Android users, and not Windows or iOS users.
- For BHIM to be useful for the majority, everyone must start using the app to send & receive payments.
- You can access only one account per mobile number.
How does the BHIM app work?
This is a step-by-step guide for installing, launching, setting up & using the BHIM app.
A) How to download the BHIM app:
Download and Install BHIM app from Google Play store – https://goo.gl/uyIAoz . All you need is a bank account and your registered mobile number for the account. On using the app for the first time, it automatically binds itself to the device ID & phone number. Thus it won’t work on the phones without SIM & cannot be used from 2 phones. The app is currently not available on IOS & WINDOWS.
B) Steps to install and use the BHIM app:
- Select your preferred language. Currently only Hindi and English are available.
- The app will prompt for access to SMS and Phone calls. Grant these permissions.
- If you are having a dual SIM, select the SIM which has the mobile number that is registered with your Bank. Click on Next. The app will verify the Mobile number and prompt you to register a Passcode.
- Login by setting a 4-digit application password.
- Link your bank accounts using bank account option. You will get a list of all the banks registered with UPI. On selecting your bank, you can select the account number and set the PIN using the last 6 digits of the Debit Card number and the Expiry Date.
- Remember that the PIN that you set for the Bank account is different from the application PIN that is required to log in to the app.
- Visit the ‘Profile option’ and set virtual payment address (VPA)s. Up to 2 virtual payment address (VPA)s are allowed per user. Eg: 9xxxxxxxxx@upi, 2. name@upi
- Set one virtual payment address (VPA) as a primary virtual payment address (VPA). For Eg: name@upi can be primary virtual payment address (VPA). This makes it easy to share it with others.
- QR code feature is also available on the app. You can download and send the QR codes to anyone who you want to pay. As a merchant, you can print and display it in your shop.
- Users can Send Money using virtual payment address (VPA), Mobile Numbers, Account number + IFSC or the Scan and Pay option (if you have the QR codes).
- Users can Request money from Mobile or Payment address. They can also generate a QR code for a specific amount, validity, and share.
- All transactions done are visible under the Transactions tab. You can report any issue if you feel something is not right with any of the transactions.
- If someone requests money from you, you get an in-app notification and the same is also shown under Pending transactions. You may choose to pay or decline the request.
Detailed step by step instructions are available here: http://www.npci.org.in/documents/BHIM-User-Manual.pdf
The complete PPT version is available here:
The NUUP & BHIM apps thus provide a simple & secure way for cashless transactions.