Launched in 2016, the United Payments Interface (UPI) is a great way for average consumers to facilitate daily payments.

Data has shown that Indian consumers now prefer to pay using UPI over other payment methods. Even during and post the COVID-19 lockdown, UPI beat cards and net banking by wide margins.

This is large because UPI is seamless and easy-to-use. The UPI intent flow has high usage on Android devices, and with Razorpay bringing the UPI intent flow to iOS as well, the usage of UPI is only going to increase.

While such features can be immensely beneficial for small businesses, the average consumers also stand to gain from using UPI payment apps. This is mainly because of the vast range of features and use-cases they have.

And of course, the next big thing in the digital payments space is UPI AutoPay, which will allow consumers to subscribe to products and services using UPI AutoPay.

What is UPI ID?

UPI IDs are unique to each customer and are used to facilitate payments between customers and merchants. It offers a Virtual Payments Address for senders to enter when transferring money to your account. In order to create your own VPA or UPI ID, you must begin by downloading any app of your choice and registering yourself on it.

What is UPI ID example?

UPI is a unique identifier for bank accounts in India.

For example,

“abcdef” can be your name, email address, or mobile number and ‘@ybl and @okicici’ are your bank’s initials.

Features of UPI payments

UPI payment apps offer a simple solution to a very basic problem.

Some of the features of this mode of payment include:

  • Reliability: First and foremost, as UPI is launched by the National Payments Corporation of India (NPCI), one of the biggest features associated with it is its reliability. The problem with using third-party payment apps to facilitate payments online is often the fact that even the slightest fluctuation in internet can lead to the loss of money. Though these apps offer excellent customer service and help customers get their money back, often the issues lie with the website or portal they are used on. With UPI, customers have far greater control over transferring their funds and do not have to worry about them getting lost along the way.
  • Real-time transfers: Another vital feature associated with UPI is the fact that all transfers occur in real-time. Customers press the send button and their beneficiary receives the payments in a matter of seconds. As a result, basic daily-life activities such as buying groceries, taking an auto or cab home from work, or paying a friend back after borrowing money are simple and convenient. The simple 2-step process used in these payments makes it easy for customers to enter the digital economy without having to think twice.
  • Inclusivity: UPI does not always rely on the internet. While this functionality depends on the payment app used, UPI offers the option to conduct transactions without a smartphone or working internet. In order to do so, consumers must simply send specific text messages to initiate the transactions. As a result, individuals belonging to all sections of society can enter the digital world. As many payment apps also offer instructions in regional languages, they make it even simpler for many people to be a part of this revolution.
  • No minimum transaction limit: UPI does not have a minimum transaction limit. Payments as low as Re 1 can be made while using this payment mode. As a result, this makes the idea of using digital transactions far more palatable to people who conduct daily transactions with vendors or merchants. Unlike NEFT and RTGS payments, UPI does not have a transaction charge either, as of now. This adds to the overall convenience of using these forms of payments.

How to create a UPI ID?

Registering your bank account and mobile number with UPI-enabled apps like Google Pay, PhonePe, Paytm, Mobikwik, etc can be achieved by following these steps. It can be in either any UPI-enabled bank app or Bharath Interface for Money (BHIM) app.

Create a UPI ID in BHIM App

  • Step 1: Download the BHIM app or any other application that accepts UPI
  • Step 2: While using the BHIM app, after choosing your preferred language and “accepting” various prompts, you will receive a “Verify Mobile Number” request.
  • Step 3: After the verification process is done, you will be asked to select your preferred bank name.
  • Step 4: Details such as bank name, the IFSC code, and account number will be automatically received by the app. In case you have more than one account added to the same mobile number, you can select your desired account to link to the app.
  • Step 5: You have to set a UPI ID and a 4 digit or 6 digit PIN to keep all your transactions safe. Now, you are all set to proceed with your UPI transactions!

A *99# service has been launched to take the banking services to every common man across the country. Banking customers can avail of this service by dialing *99#.

Registering through *99#

  • Step 1: Dial and call ”*99#” on your phone
  • Step 2: Select your preferred language
  • Step 3: Enter your bank’s name or the first 4 digits of your IFSC code
  • Step 4: Choose your bank account
  • Step 5: Enter the last 6 digits and the expiry date of your debit card
  • Step 6: Enter and set your UPI pin
  • Step 7: Confirm your UPI pin and you are good to go!

How to find UPI ID?

To find your UPI ID, open the UPI app on your phone and click on the three lines in the top left corner. Select “Profile” and your UPI ID will be displayed at the top of the screen.

Find UPI ID in BHIM app:

  • Step 1: Log in with your app password
  • Step 2: On the main screen, select the “Profile” option from the drop-down menu. Now, you can view your UPI ID with your QR Code.

Find UPI ID in Google Pay

  • Step 1: Open Google Pay
  • Step 2: Tap your photo on the top right
  • Step 3: Tap Bank Account
  • Step 4: Tap the bank account associated with the UPI ID
  • Step 5: You will find the associated UPI ID under UPI IDs

How to change UPI ID?

Under the Settings section, select UPI ID. You will then be able to enter your new UPI ID.

Change UPI ID in BHIM app

  • Step 1: Open the BHIM app and tap on your profile
  • Step 2: Tap the Settings option
  • Step 3: You will find an option to edit your UPI ID
  • Step 4: After making the necessary changes to your ID, tap on Confirm

Change UPI ID inGoogle Pay

  • Step1: Open Google Pay
  • Step 2: Tap your profile photo
  • Step 3: Tap Payment Methods
  • Step 4: Tap the bank account whose UPI ID you want to view
  • Step 5: Tap the UPI ID associated with your desired bank account
  • Step 6: Tap the ‘+’ icon next to the UPI ID you desire

How to use your UPI ID?

The UPI ID or VPA is what you share with your customers or family when they need to make payments to you. It is the detail that you can use instead of sharing your bank account number.

Picture this: When you wish to send a text message, you must first enter a name or number in the recipient’s section. The UPI ID functions the same way.

If you wish to send funds to someone, you just need their UPI ID and not even their bank account number. Just enter their UPI ID into your app and initiate the payment.

If you are a small business owner and wish to accept payments using UPI, check out the link below.

Frequently asked questions:

Who started UPI?

UPI has been developed by The National Payments Corporation of India (NPCI) and regulated by the Reserve Bank of India (RBI). It was launched by NPCI on 11th April 2016 and was publicly launched on 25th August 2016.

What is the full form of UPI ID?

UPI ID stands for Unified Payments Interface Identity

How do I find my UPI ID?

A UPI ID is a unique identifier that you can use to send and receive money on UPI. Think of it as a unique portal that you can use to transfer money.

Is UPI ID unique?

UPI IDs are generally different for different apps. Your UPI ID may differ according to the bank you have linked the account with.

What details are required for UPI?

To use UPI, you must have a bank account with a member bank, i.e., your bank should allow you to use the UPI feature. Furthermore, your mobile number must be registered with your bank account.

How do I recover my UPI pin?

Login to BHIM App - Click on Bank Account after which you will be shown the accounts you’ve linked on BHIM below which you can reset your UPI PIN. (Please keep your Debit Card details handy to reset your UPI pin.)


Saurin heads Content at Razorpay. He's a fintech enthusiast who enjoys long walks in the Bangalore weather. He says he's a "cool dad" (those are his words, his son has refused to comment). He writes primarily on personal and business finance, and a little bit on marketing.

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