Until some time back, exchanging money was a tedious task for the two parties involved. For one, no one is willing to carry a large stack of hard cash on them, for fear of losing the money or fraud. Also, if a system of instalments was adopted, one or the other party had to always stay behind the other party’s back, to get their money. It was a tricky job to count the entire denomination, in case the size of transaction was large and took a lot of time. Therefore, a system of online and digital payments was somewhat imminent and expected. After all, how long could people be expected to carry on counting cash in this busy life! Then came a time when we faced a major uplift in the digital payment scene in India and that is when people started making use of online payment methods such as NEFT and RTGS. These methods were seen as a major improvement over the existing method of cash exchange as one could easily verify the status of a payment through one click of his smart phone or desktop. However, even these modern methods of payments were riddled with some glitches and technical aspects that made them tricky to understand and implement on day to day basis.
For one, payment, methods such as NEFT and RTGS necessarily require correct details of the other party pertaining to their account number, address and IFSC code. This information is needed to add them as a payee, before any actual transfer could take place. For this reason, these payment methods could not be used on a day to day basis with stranger parties or more frequently due to limit on the amounts that could be transferred in a day. With the introduction of UPI, the online digital payment scene has improved considerably. So much that one can now transact in a single go, even while he is standing on the road.