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What is UPI and How Does It Work?

This document explains what UPI is, which UPI apps are commonly used in India, which UPIs our wallet supports, and how UPI is used in our wallet system.

What is UPI?​

  • UPI stands for Unified Payments Interface.
  • It is a real-time payment system developed by the National Payments Corporation of India (NPCI).
  • UPI allows users to instantly transfer money between bank accounts using mobile apps.
  • It works 24 hours a day, 7 days a week, including weekends and holidays.

Main Features of UPI:

  • Fast transfers and instant settlement.
  • Works across different banks.
  • Simple to use with a smartphone.
  • Secure and regulated by the Reserve Bank of India (RBI).

UPIs Supported by the Wallet​

Our wallet supports many UPI platforms to help users complete transactions quickly and safely. The most commonly used UPI apps in the wallet are:

  • PhonePe
  • QuickPhonePe
  • Paytm
  • Airtel
  • MobiKwik

Note 1:
The list of supported UPI services may change based on business needs and regulatory updates. You can visit the wallet web version, click UPI, and then click Quick UPI to see all available UPI options.

Note 2:
If a UPI has a buy label, it means you can use that UPI to purchase wallet balance using the Bank method. See the example below:

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The Role of UPI in the Wallet System​

UPI plays a very important role in our wallet operations:

  • When Users Sell Balance:

    • When users sell balance through the wallet, funds are usually transferred to their UPI account.
    • The upstream provider completes the payment via UPI.
    • If the user’s UPI is offline, the system cannot fetch the billing information. This can cause the order status to appear as Pending.
    • Users can update their UPI details at any time. To verify transactions, we often use the Payee Ct field.

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  • When Users Buy Wallet Balance:

    • Users often use their own UPI apps to pay and add balance to their wallet account.
    • When using the Bank method to buy balance, the UPI used for payment must be linked to the wallet account, and the same UPI must be used for the payment. These UPIs will show a buy indicator when being linked.

  • UPI Instability:

    • Although UPI transactions are secure and recorded, the connection between the wallet and UPI is sometimes unstable. This is a common issue in daily operations. All customer support staff need to understand how to handle UPI-related problems, including:
      • How to guide customers to keep their UPI online when it goes offline.
      • How to check the transaction status if UPI is offline.
      • How to handle pending bills when UPI shows a Pending status.