UPI Collect

UPI has emerged as one of the fastest methods of fund transfer and payments in India. It is devised for both push and pull transfers i.e., both payment & collection of funds with the use of a Virtual Payment Address (VPA) and UPI PIN. In this article, we shall understand what is UPI Collect, how it is processed and what are the benefits.

Unified Payment Interface

UPI is a payment mechanism which allows two people to exchange funds using a unique virtual payment address (VPA). There is no need to share banking information with the other party for the transaction to take place. UPI facilitates transactions with a single identifier or UPI ID or VPA.

What is UPI Collect

Not only can UPI be used to transfer funds from one account to another but it can also be used by people to make payment to a merchant on an online platform. Many major online shopping platforms and shops have included UPI as one of the payment methods for customers. 

• For this purpose, they partner with an online transaction collection service. This service will send a collect request to the customer who shops at the online website and chooses to make a payment using his/her UPI
• This UPI Collect request shall be sent to the customer on the registered virtual payment address for which the customer shall also receive a mobile notification, inferring him that a UPI Collect request has been sent to him/her
• Once the request is accepted, the payment shall be complete

In this way, UPI Collect eliminates the need to use any extra codes or digits to complete the transaction, making it quite convenient for both parties. 

• The interface of UPI Collect through participating vendors is also very easy to understand and use, making it an indispensable mode of transacting in the present day
• The best part about UPI Collect is that it makes it possible for a transaction to be completed in a few seconds or a minute at most
• Customers need not enter multiple codes or values to complete the payment

How to Collect Money using UPI

Step 1: Log-in to the UPI enabled application

Step 2: Go to UPI section and click on ‘Collect with VPA’

Step 3: Enter the details such as the VPA of the payor, amount and remarks

Step 4: Choose VPA to be credited

Step 5: Choose to receive money immediately or anytime in the next 7 days and click on ‘Submit’

Step 6: View the details on the next screen carefully and click on Submit to process a Collect payment via UPI

Step 7: Once the person authorises the transaction the money will be credited to your account

How to Accept a UPI Collect Request and Make the Payment

Step 1: A collect request is sent to your mobile number

Step 2: Log in to your UPI application and click on UPI

Step 3: Now, choose ‘Pending UPI transactions’

Step 4: View the merchant/person’s request carefully and choose the VPA from which the payment is to be made

Step 5: Enter the UPI PIN associated with your bank account

Step 6: The funds will be transferred instantly to the beneficiary once you submit the request

Benefits of UPI Collect

• Neither party has to wait for the transaction to be completed, or use extensive data for it to happen
• One can set up a virtual payment address using any bank’s mobile application, irrespective of which bank he holds an account in making the use of UPI quite universal
• One need not wait to install and use a specific application to use the service of UPI as these transactions can be initiated from any place and at any time
• The customer need not provide his bank details. Unlike other payment mechanisms where one has to enter his card details, OTP, bank account address, name and more, UPI only requires a simple virtual payment address for the transaction to be complete
• This improves the safety and security of the entire transaction and the process involved

Frequently Asked Questions

Q. What is VPA in UPI?

VPA in UPI is a unique ID created by the user to send or receive money through UPI. Having a UPI ID, linked with a UPI-enabled Bank, enables a user to receive money in his/her bank account without sharing his/her account number or other details.

Q.How do I respond to collect pay request that has been sent to my UPI?

You can go to your UPI enable application, click on UPI, go to ‘Pending UPI transactions’, verify and enter UPI PIN. After that click to submit and transfer request.

Q.What details do I need to either send money or request money in UPI?

You only need the VPA of the beneficiary or the remitter. There is no need for you to provide any other details to initiate a transaction.

Q.Can I send money to anyone using UPI?

Yes, you can send money using the UPI with your UPI enabled bank account. You will need to register and set a UPI PIN using the debit card details linked to the bank account. If your beneficiary’s bank account is also linked to UPI, you can simply use his/her mobile number or Payment Address to transfer funds. If not, you can use IFSC code, Bank account or MMID to send money.