UPI charges on merchant payments above ₹2,000 have led to questions about other ways to make digital payments.
There are several alternatives that can be used for everyday transactions, including digital rupee, contactless card payments, mobile wallets and other bank transfer methods.
These options can be useful for people looking for ways to make digital payments without relying only on UPI.
Digital Rupee for Payments
The Digital Rupee is the RBI-issued digital form of the Indian rupee. It works through a digital wallet on a mobile phone and can be used for payments, including QR-based transactions.
Unlike a bank-to-bank online transfer, a digital rupee transaction works through a digital wallet. The digital currency is legal tender and is different from private cryptocurrencies.
The Digital Rupee can be used without intermediary charges, convenience fees or merchant discount rates for users and merchants, according to the information provided.
To use it, customers need to download and activate a Digital Rupee app offered by their bank. The digital rupee can then be stored in the wallet and used for payments.
Tap Your Card to Pay
Debit and credit cards with NFC support can also be used for contactless payments. Instead of inserting or swiping the card, users can simply tap it on a compatible point-of-sale machine.
Contactless card payments can be made without entering a PIN for eligible transactions. The provided information states that payments of up to ₹5,000 can be made through this method at a time.
The card does not need to be handed over to the merchant for a contactless transaction. This makes the method convenient for everyday purchases.
Pay Using Your Phone or Watch
Another option is to save an eligible debit or credit card on a supported smartphone. Services such as Samsung Wallet and Google Wallet allow supported cards to be stored digitally.
Once the card is saved, users can tap their phone on a compatible POS machine to make a payment. This removes the need to carry a physical card.
Smartwatches and other supported wearable devices can also offer contactless payment features. This can be useful for people who do not want to carry their phone or wallet for every transaction.
IMPS and NEFT for Large Payments
IMPS and NEFT are other digital payment options, although they are not as simple as UPI for everyday merchant payments. These methods generally require details such as the recipient’s bank account number and IFSC code.
They can be useful when making larger digital payments where a bank transfer is more suitable. The transaction process may take longer than a typical UPI payment, depending on the payment method and circumstances.
Overall, users have several digital payment options apart from UPI. The right method can depend on the transaction amount, the payment device available and whether the merchant supports the payment method.
