UPI Payment: Experts say that using UPI wallet for daily purchases like payment of milk, vegetables, fruits is beneficial and safe. But, currently most of the users use UPI payment, in which money is withdrawn directly from your bank account.
UPI Payment: Which do you use between UPI and UPI wallet for daily payments? Most likely you use UPI. But, experts say that using UPI wallet for daily purchases like milk, vegetables, fruits is beneficial and safe. To understand why this is so, we first have to understand the difference between UPI and UPI wallet.
Difference between UPI and UPI wallet
UPI is a payment system that allows money transfer between two bank accounts. This transfer is done through the UPI app of the smartphone. It includes Google Pay, PhonePe and Paytm. On the other hand, UPI wallet is a kind of pre-paid wallet, which is linked to the UPI app. You can use the money deposited in this wallet for your small transactions. For this you will not have to access your bank account.
Why UPI wallet is safe for small payments
UPI wallet is considered safe for small amount transactions because it does not require you to access your bank account. You will be able to make payment of only that amount which is in your wallet.
We can understand this with the help of an example. Suppose you have to make a payment of Rs. 500. But, by mistake you put one extra zero and the payment will be of Rs. 5000. This is possible in UPI payment. But, the chances of this are less in UPI wallet. If you have Rs. 3000 in your UPI wallet and by mistake you have made a transaction of Rs. 5000 instead of Rs. 500, then it will not be possible because the limit of your UPI wallet is only Rs. 300.
Cashback and Rewards
Cashback offers, discounts and reward points are available on using UPI wallet. This benefit is not available in UPI payment. Many wallet providers have agreements with shopkeepers and e-commerce companies. This gives some rewards on daily purchases made from the wallet.
Ease of use
Once you load the UPI wallet, small payments become very easy. You do not need to enter the UPI PIN for every payment. This makes the transaction complete quickly. If you use it for small transactions every day, then it can save you a lot of time. Secondly, you also do not have to worry about how much money is left in your savings account. The amount you add while loading is in your mind.
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