Utilize UPI to its best with PhonePe digital Wallet
India is lucky to have a few government organizations which are always innovating and looking for various useful things to help the masses. We have organizations like Indian Space Research Organization and National Payments Corporation of India, and they’ve both been doing exceptional work in their field. Space research is out of our niche, but when it comes to internet based wallets and money transfers, we can definitely take a look.
NPCI has already worked on IMPS which is an inter-bank payments protocol used by hundreds and thousands in India. They’ve now taken IMPS to the next level and have made it easy for people to make IMPS payments using UPI or Unified Payment Interface.
UPI works in the same way IMPS works, but it is much easier to use since all you need is a virtual payment address to send or receive payments. Your phone number which is attached to your bank is automatically detected by a UPI app, and you can then go ahead and create a VPS or virtual payment address for yourself.
After creating a VPA, you need to verify your bank account by entering your debit card number and setting an MPIN which will be used to make transactions. UPI has a lot of scope when it comes to payments in India. We have seen many UPI apps in a while, but one of the apps that is providing something new is the PhonePe app.
What is PhonePe?
PhonePe is a UPI app developed by Flipkart which is meant to provide all the features of a modern digital wallet directly using UPI. There are key differences that the PhonePe app has as compared to Paytm or any other eWallet.
First of all, there is no need to load money in a digital wallet. PhonePe works directly with your bank with the help of UPI. This means you have more possibilities with PhonePe app.
Advantages of using PhonePe
Let us take a look at the advantages of using PhonePe over other digital wallets.
- Rs. 1 Lakh per day transaction limit ~ Rs. 30L per month.
- No need to load money from your bank to a digital wallet.
- Secure and easy bank to bank transactions using UPI.
- The transactions are secured by MPIN which is similar to ATM pin.
- Can use PhonePe to perform bill payments, phone recharges and more!
- No transaction charges EVER.
These are some of the biggest advantages that PhonePe has over other digital wallets. The biggest one as per me is the zero transaction charges. Wallets like Paytm will start charging for transactions after 31st December 2016.
How to setup PhonePe?
Getting started with PhonePe is very easy. All you need to do is follow the steps given below.
- Download PhonePe wallet on your Android device from Play Store.
- After it is installed, just open the PhonePe app and allow all the permissions to the app.
- If you have a dual SIM phone, you will be asked which SIM to be used for your UPI transactions.
- Choose the SIM and tap on Send SMS.
- Now go ahead and create your PhonePe account by providing all the details.
- Next, you can choose the bank account to be used with PhonePe.
- You will be asked to set your @ybl VPA and set an MPIN if you already don’t have one.
- Now your PhonePe app is all set-up, and it is ready for you to use.
Exploring the PhonePe app
Sending money using PhonePe
The home sreen of the app is pretty simple and has a straight forward layout. You can see the first row of options that is for transferring money. You can send, request and split a bill here.
Sending money can be done easily using contacts on your phone, VPAs and even direct to bank accounts. Let us show how to send money to someone using VPA.
- On the PhonePe home, just tap on Send.
- Now switch to the VPA tab and then if you don’t already have a VPA added, just add one.
- On the next step, you need to enter the amount you want to send and the just tap send.
- After tapping send, you will be asked to enter the MPIN.
- After the MPIN is verified, the transaction will go through.
Requesting money & Splitting bills
Requesting money with PhonePe is very easy. All you need to do is choose the contact or VPA you want to request money from and then enter the amount you want to request. Then you just need to tap on Request in order to send the money request.
Splitting bills is also very easy. Just choose the contacts with whom you want to split the bill and then tap continue. On the next step, just enter the bill amount and then tap Split a Bill. But keep in mind that this feature will only work with people who have a @ybl or a PhonePe account.
Recharging & Paying bills with PhonePe
As mentioned, PhonePe provides easy methods to pay bills and perform phone recharges directly using money from your bank using UPI. This reduces 2-3 steps as compared to what digital wallets have in place since all you need is an MPIN to complete these transactions.
You can recharge mobiles, pay bills and even pay for insurance, etc.
Paying at Stores using PhonePe
PhonePe has one major application that is using UPI to pay at offline brick and mortar stores. But this is something that will take some time to setup over the country, and I am sure PhonePe is already working on this. This will mean transactions at offline stores with zero charges both for the consumer as well as the shopkeepers.
PhonePe is a great app that shows what UPI is able to do if used properly and it is one of my favorite apps to perform transactions apart from digital wallets. I am already using PhonePe as my main UPI application just because of the amazing app that it is.