In the last few years, we have witnessed some of the greatest advancements in the domain of technology. We have started implementing all these advancements in our daily lives to make the tasks easier and more organized. One such implementation is the use of Digital Transactions.
Now two such advancements in this Digital transactions field are Mobile wallets and UPI (Unified Payments Interface). And since their arrival, there’s always been a debate about their differences and which one of them is more convenient and safer to use. On an overall basis, UPI is a much more reliable and safer method of making online transactions.
Let us discuss the differences between them and the advantages of UPI over Mobile wallets.
Disadvantages of Mobile Wallets
Adding and withdrawing money from banks using Mobile wallets is not convenient.
For non-KYC users, transactions are limited only to Rs.10k.
Mobile wallets are not accepted everywhere; as a result, they are not a universal method of transaction.
Advantages of UPI over Mobile Wallets
Freedom from KYC
While it is mandatory to provide KYC forms for using any E-Wallet, UPI does not require any KYC for working. Providing KYC can be hectic, and thus UPI is a much simpler way of making all your payments. Moreover, even after completing KYC, chances are there that you won’t be able to transfer money to different wallets. Thus UPI is far more convenient.
Freedom from Beneficiary
What makes UPI a faster method of making transactions is its freedom from adding beneficiaries. While using a debit/credit card you need to enter your card details, card pin, CVV, Card Expiry Date, Card Holder’s name, OTP, etc. which makes it a very time consuming process. Moreover, it might happen that you are unable to generate the OTP even after filling in all the details properly.
UPI, on the other hand, is very simple to use. You need to enter you UPI Id and boom you’ll be taken to the payments page, and thus you can avoid all the hectic and time-consuming steps.
UPI is much safer to use than traditional methods as well as mobile wallets for transactions. All your sensitive information are well encrypted using two different pins, and only your virtual address is displayed which do not provide any information about your bank details.
Using just a single UPI, you can link different bank accounts which makes it a universal way of making online transactions.