What are UPI Payments, and How to Use Them?

Guide to UPI Payments | Stashfin

The world is looking for India and its revolutionary inter-bank instant payment system, UPI. India’s flagship instant payment system UPI has reached even France now, with Indian tourists being able to make payments using rupees starting at the top of the Eiffel Tower. 

This has put India on the map for digital payments and also put India in a position where it exports UPI to more than 30 countries.

Although UPI apps are already widely adopted in almost every part of India, not many know what UPI is. How to use it, and what are its benefits? Let us find out.

What is UPI?

UPI is a payment integration that allows instant real-time inter-bank person-to-person or person-to-merchant transactions. UPI’s popularity has soared with the pandemic as people shifted from physical currency to digital payments.

According to a report, it is now used by more than 300 million people monthly as of November 2022. Making it one of the most widely used payment systems in the world.

What is the impact of the availability of a Line of Credit on UPI Payments? 

What are the features of UPI Payments?

  • Instant Transfers

UPI allows instant fund transfers between different banks in real time, making transactions quick and convenient for its users.

  • QR Code Payments

Scanning a QR code and paying is the quickest way to transact. All one needs to do is to open their UPI app, scan the code, input the amount you wish to send and confirm using a pin. This allows for a seamless transfer of funds without unnecessary steps.

  • Virtual Payment Address (VPA) 

UPI apps allow users to create a unique VPA linked to their account, allowing for a secure transfer without remembering and sharing your bank details for every transaction.

  • Secure and Encrypted

With the growth of UPI, there has been a constant fear among a part of the population over its safety. But it is important to note that UPI transactions are highly secure and use state-of-the-art encryption techniques and multi-factor authentication to protect users’ information.

  • Multiple Bank Account Linking

Several UPI apps allow for linking multiple bank accounts, allowing for seamless switching and the ability to use all of them for payment when you wish to without having to juggle numerous apps. This allows for greater flexibility and choice when making transactions.

How to pay through UPI?

  1. All you need to do is to add your bank account to a UPI app.
  2. Then you can scan the recipient’s QR code or search them using their VPA or phone number.
  3. Afterward, you can choose whether you want to send the money through your bank account or the digital wallet linked to the UPI app. 
  4. You will then be needed to input the amount you want to transfer to the recipient. 
  5. Once you confirm the amount, you need to enter the pin to confirm the payment. 


This makes UPI simple and instant for both users and merchants who don’t need to do anything other than set up their accounts and get the QR codes for their physical stores. 

In the case of e-commerce, the merchant can integrate UPI using secure payment gateways, allowing for quick and easy money transfer. 

What is line of credit in UPI

India is seeing an unprecedented rise in easy-credit availability as a growing economic superpower. This has allowed Indians to make financial choices they might not have been able to make thus far. It puts the power back in their hands and allows them to make the purchases they might not be able to then. 

UPI has added this functionality with UPI Pay Later, a buy now, pay later system which allows users to borrow money at competitive rates based on predetermined amounts.

Building on that idea, Stashfin has continued to innovate and integrated its line of credit offering to UPI. This will enable people to make various purchases without dipping into their savings.


Now that you know what UPI payment is, how to use a UPI payment app, why it is beneficial to use UPI, and what the future of UPI payments in India looks like, allowing you to make better use of it. By integrating a line of credit into UPI, users can buy their weekly groceries and pay them within 30 days without paying any interest. This allows users to stave off debit when awaiting their salaries.

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