UPI is a boon or bane?

When I first heard about UPI (Unified Payments Interface), I was skeptical. The idea of paying for everything from a cup of tea to a taxi ride just by using my phone seemed too futuristic for my small-town roots in India. However, as I ventured into this new era of digital transactions, my perspective changed dramatically.

I loved it eventually but it is not all roses. There are some psychological issues with it as well.

The Ease of UPI

Payments Made Simple: My initial encounter with UPI was at a local street food vendor. The vendor pointed to a QR code with a smile. “Scan and pay,” he said. I was hesitant, but the ease of it all was undeniable. With a few taps on my phone, I paid for my delicious plate of pani puri. No cash, no hassle.

• Phone and QR Code: Whether it’s paying at a shop, splitting a bill at a restaurant, or transferring money to a friend, UPI has made financial transactions incredibly straightforward. All you need is your phone and a QR code, which has become as common as the shop signboards.

• Safety First: There was a time when I used to keep a wad of cash in my wallet, always vigilant about pickpockets, especially in crowded places like markets or buses. UPI has eliminated that fear. Now, my wallet feels lighter, my mind at ease, knowing my money is safe in my digital account.

• No Minimum Transaction Limit: The first time I paid just one rupee for a eclairs chocolate, I was amazed. No extra charges, no rounding off to the nearest five or ten. This level of precision in payments was a game-changer, especially when sharing small expenses.

• Global Ambitions: Recently, I read about BRICS countries adopting UPI. It’s thrilling to think that this system, which I’ve grown to rely on daily, might soon be a global standard. Imagine paying in Moscow or Cape Town with the same ease as in Benagluru!

The Flip Side of the Coin

However, like any technology, UPI isn’t without its pitfalls:

• The Loss of Physical Money’s Tangibility: There’s something visceral about handing over cash. The act itself can remind you of the value of money. With UPI, I’ve noticed a disconnect; money seems less real, and spending becomes more abstract. Sometimes, this leads to a lack of financial discipline.

These days I don’t mind paying ₹2000 for groceries in supermarkets. Before, I used to be hisitant to pay ₹5 extra for a different kind of sona-masuri rice.

• Unnecessary Online Purchases: The convenience of UPI has also made online shopping incredibly easy. There have been numerous occasions where I’ve bought items online just because it was so simple to pay, only to realize later that I didn’t really need them. This ease can foster impulsive buying behavior.

• Scams and Security: Despite its benefits, UPI has not been immune to scams. I’ve heard of friends receiving fake calls or messages pretending to be from the bank, asking for OTP, personal details or to make a ‘test transaction’. It’s a constant learning curve to stay one step ahead of these fraudsters.

Living with UPI has transformed my daily life in ways I couldn’t have imagined. The convenience it brings is unparalleled, making financial transactions not just easier but also safer and more inclusive.

However, this digital shift requires us to adapt in other ways, to understand the psychology of spending without physical currency, and to be vigilant against scams.

As UPI continues to grow, perhaps even globally, it’s clear that while we embrace this technology, we must also educate ourselves and others on its responsible use.

My journey with UPI has been one of convenience, caution, and continuous learning, and I look forward to seeing where this digital payment revolution takes us next.