6 Reasons You Should Not Depend Only On UPI For Your Business To Function
The United Payments Interface (UPI), which began operations in 2016, is a terrific means for regular people to conduct the day-to-day financial transactions that they need to do.
Even while such capabilities could be of immense assistance to small businesses, average consumers also stand to profit from adopting UPI payment systems. This is mainly attributable to the vast array of functionalities and application situations they make available. With all UPI payment apps, there are also certain UPI limits per day given to the users.
What is UPI?
Unified Payments Interface, referred as UPI, is a real-time instant payment system that is developed by the National Payments Corporation of India. Since the Reserve Bank of India controls the system, this also means that the RBI regulates UPI. It facilitates the transfer of money between bank accounts of different users in real-time using a mobile application. Paytm, PhonePe, MobiKwik, iMobile, and the BHIM app are among the more popular ones you may have heard in recent years. There are nonetheless a great many more. Several banks have their own UPI app, including Axis Pay, Baroda MPay, Airtel Money, SBI Pay, Pockets-ICICI Bank, Yes Pay, etc. Airtel Money is the most well-known.
Why do we need UPI for business?
A user can have a single mobile number and app linked to numerous different bank accounts. This provides a virtual payment address (VPA) that may be used to send and receive money. It is expected that UPI will be operational around the clock every day of the week. Unified Payments Interface (UPI) users may link their bank accounts to any app, even those supplied by rival financial institutions or third parties. However, you can not go beyond a certain UPI limit per day with these UPI apps.
Why Can’t You Rely On UPI To Run Your Business?
#1. The usage of UPI apps needs to be more carefully controlled and standardized. Increasing the rigor with which these apps are approved by the National Publications and Communications Institute (NPCI) against 100 percent feature compliance before they are made accessible on the Google Play Store is excellent. It also comes with a certain UPI limit per day that you must know about.
#2. At the moment, the highest amount of money that can be transmitted using the UPI mobile app is Rs 100,000, and it may be sent to any recipient.
#3. Payments may be delayed at times, and it may take up to 48 hours for the money to be reimbursed back to your bank account in these circumstances. It has the potential to result in unsatisfied consumers and the loss of prospective clients.
#4. A centralized procedure for recording any deviations needs to be developed, and the NPCI needs to be permitted to take punitive action in circumstances where such variations occur.
#5. It might be challenging to persuade customers to download the bank application on their smartphone to use the UPI as a single payment interface. This is because customers are wary of falling prey to fraudulent activities that take place online. Another issue with the UPI is highlighted here.
#5. You should be aware that you will have to transfer money from the unified payment interface pin, also known as the UPI pin, and that this pin is tiny, between 4 and 6 digits in length. It is not safe because it is such a small number of digits, so proceed with caution and do not share this information with anyone else.
#6. A charge that varies from 1.5 percent to 4 percent of the total value of each transaction is needed to be paid by small businesses in exchange for the option of utilizing other digital payment systems. Such expenditures are unsustainable in trade margins, ranging between 5 percent and 8 percent.
Along with the positive aspects, there are also some negative aspects. UPI has several advantages as a payment option, but there are also UPI limits per day to be aware of, which you should be mindful of.