UPI or UPI Wallet: Which method is more secure for small payments

UPI Payment: Which of UPI or UPI wallet do you use for daily payments? Most people use UPI. But, experts say that it is beneficial and safe to use UPI wallet for daily purchases like milk, vegetables, fruits. To understand why this is so, we first need to understand the difference between UPI and UPI wallet.

Difference between UPI and UPI Wallet

UPI is a payment system that allows transferring money between two bank accounts. This transfer is done through the UPI app of the smartphone. This includes Google Pay, PhonePe and Paytm. At the same time, UPI wallet is a kind of pre-paid wallet, which is linked to the UPI app. You can use the money deposited in this wallet for your small transactions. For this you will not need to access your bank account.

Why is UPI wallet safe for small payments?

UPI wallet is considered safe for small amount transactions as it does not require you to access your bank account. You will be able to pay only the amount that is in your wallet.

We can understand this with the help of an example. Suppose you have to pay Rs 500. But, by mistake you put an extra zero and the payment will be Rs 5000. This is possible in UPI payment. But, the possibility of this happening in UPI wallet is less. If you have Rs 3000 in your UPI wallet and by mistake you have made a transaction of Rs 5000 instead of Rs 500, then this will not be possible because the limit of your UPI wallet is only Rs 300.

Cashback and Rewards

Cashback offers, discounts and reward points are available on using UPI wallet. This benefit is not available in UPI payment. Many wallet providers have agreements with shopkeepers and e-commerce companies. With this, you get some rewards on daily purchases made from the wallet.

ease of use

Once you load the UPI wallet, small payments become very easy. You do not need to enter the UPI PIN for every payment. With this the transaction is completed quickly. If you use it every day for small transactions, it can save you a lot of time. Secondly, you don't even have to worry about how much money is left in your savings account. The amount you add while loading is in your mind.