An article explaining the difference between UPI and payment gateways www.deekpay.com

What is UPI

UPI The full name is Unified Payment Interface, theUnified Payment Interface of IndiaIt is a system used to integrate numerous bank accounts with each other to enable multiple factors, such as smooth fund routing and merchant payments using a single mobile app in just a few clicks.

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What are the main functions of UPI

People choose UPI for a variety of reasons. Among them are:

No documents need to be submitted for verification before opening an account on a UPI application. Transfers can be made 24/7, regardless of location. The availability of IQR codes makes transactions simple and instant. More banks can be accessed through a mobile app. One-click and two-factor authentication through UPI apps Merchants can make payments through a single application Users can make instant transactions without having to run to the nearest ATM to get cash. In case of any problem, the user can lodge a complaint directly through the mobile application. Users can also use UPI to pay any utility bills donations, collections, and scalable expenses.

What is a payment gateway

A system that collects payment information from the client and transmits it to the acquirer, and then transmits payment acceptance or rejection information back to the client is called aPayment Gateway. A payment gateway enables a business to accept payments when funds are available and the cardholder's information is securely verified. It acts as an interface between the merchant's website and its acquirer. It protects critical data, including credit card and payment details.

In other words, the payment gateway acts as a middleman to ensure that transactions are carried out efficiently and securely. Retailers may find it easier to integrate the necessary software with the help of an online payment gateway. The gateway manages the customer's confidential card information and acts as an intermediary between the acquirer and the merchant during payment processing.

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Is UPI a payment gateway?

UPI is a simple network used for bank-to-bank transfers. Users do not need to follow the IMPS（Payment gateways are a subset of Payment Service Providers (PSPs), which are more complex tools involving various underlying processes and steps to allow funds to be transferred between customers and merchants/businesses. On the other hand, Payment Gateways, a subset of Payment Service Providers (PSPs), are a more complex tool that involves a variety of underlying processes and steps to allow the transfer of funds between customers and merchants/businesses. While both have the same end goal, even though payment transfers are easier, payment gateways are the more secure option.

In short, a payment gateway is a platform that supports UPI and other payment options as payments are processed through them.

Difference between UPI and Payment Gateway

National Payments Corporation of IndiaThe number of transactions through the Unified Payment Interface of India (UPI) during the epidemic soared to 2.29 billion in February 2021, the information provided showed.

However, with the growing popularity of online payments and e-commerce, the incidence of financial frauds is at an all-time high due to the lack of a robust security infrastructure. Due to lack of digital literacy and lack of awareness about online frauds and scams, fraudsters are taking advantage of this as payments using UPI are gaining wider acceptance among small business owners in rural-urban and rural cities in India. Payment gateway transactions are more secure as compared to UPI payments.

FeaturesPayment Gateway UPIHow to choose a payment gateway will have multiple payment options, international payment support, fast integration, pricing and easy checkout. The process of choosing UPI is simpler and easier compared to payment gateways. Using a payment gateway allows users to make simple online transactions through compatible different payment methods. It integrates various bank accounts, smooth routing of funds and merchant payments into a single mobile application (of any participating bank). BenefitsIt is a third-party medium that helps you complete transactions for online payment requirements. Real-time transfers from mobile devices are possible through UPI. Payments are available throughout the year. Are payments convenient The payment gateway is a channel to facilitate payments. No Security Highly secure. Less secure than payment gateways.

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