How to Pay with UPI ID: A Step-by-Step Guide

UPI enables instant money transfers using a unique UPI ID. Know how to pay with a UPI ID securely for hassle-free transactions.
How to Pay with UPI ID: A Step-by-Step Guide
SET UP UPI
5 mins
11 February 2025

What is a UPI ID?

A UPI ID (Unified Payments Interface ID) is a unique identifier used for digital transactions in India. It acts as a virtual address linked to a user’s bank account, enabling quick and secure money transfers. The UPI system, managed by the National Payments Corporation of India (NPCI), allows users to send and receive money instantly without needing to enter lengthy bank details.

A typical UPI ID follows a standard format, such as ‘yourname@bankname’. This ID simplifies digital transactions, ensuring users can pay merchants, transfer funds, and even pay utility bills with ease. UPI transactions can be completed using various banking apps, third-party payment platforms, or the Bajaj Finserv BBPS platform (Bajaj Pay). These platforms support payments across different banks, making financial transactions seamless.

Unlike traditional banking methods, UPI transactions do not require IFSC codes or account numbers for every transaction. Users only need to enter the recipient’s UPI ID to transfer money instantly. This system eliminates the hassle of cash payments and enhances financial accessibility. Additionally, UPI IDs can be used for making online purchases, paying bills, and even splitting expenses among friends.

How to find your UPI ID?

Here is how you can find your UPI ID.


  • Using a banking app – Open your banking app, navigate to the UPI section, and find your UPI ID under profile settings.
  • Through a payment wallet – Apps like Bajaj Pay display the UPI ID under user settings.
  • Checking bank statements – Some banks include the UPI ID in transaction statements.
  • Via the Bajaj Finserv app – If using Bajaj Finserv BBPS, users can locate their UPI ID under account settings.
  • Requesting customer support – Users can contact their bank’s support team for assistance in retrieving their UPI ID.

How to pay using UPI ID?

By following these steps, you can pay using your UPI ID.


1. Open a UPI-enabled app – Launch a banking app or payment platform supporting UPI transactions

2. Select ‘Pay via UPI ID’ – Choose the option to make a payment using a UPI ID

3. Enter the recipient’s UPI ID – Input the correct UPI ID of the payee

4. Enter the amount – Specify the amount to be transferred

5. Confirm and authenticate – Verify details and enter the UPI PIN to complete the transaction

6. Receive transaction confirmation – The app provides a success message once the payment is processed

Benefits of paying with UPI ID

Listed below are the benefits of paying with UPI ID.

BenefitsDescription
Instant transfersMoney is transferred immediately without any delays.
No need for bank detailsTransactions only require a UPI ID, eliminating the need for IFSC codes.
Secure transactionsPayments are encrypted and require authentication via a UPI PIN.
24/7 availabilityUPI services operate round the clock, including holidays.
Supports multiple banksOne UPI app can link multiple bank accounts for easy transactions.
Low or no chargesMost UPI transactions are free or have minimal charges.


UPI ID vs. other payment methods

FeaturesUPI IDCredit/Debit CardNet Banking
Transaction SpeedInstantMay take time for processingCan be slow due to multiple steps
Bank Details RequiredNoYesYes
Security LevelHigh (PIN required)High (OTP verification)Moderate (Risk of phishing)
Transaction FeesMostly freePossible transaction chargesVaries by bank
Ease of UseVery easyRequires card detailsRequires login credentials
Availability24/7Dependent on banking hoursLimited support


Conclusion

Paying with a UPI ID simplifies digital transactions, offering speed, security, and convenience. Users can quickly transfer funds, pay merchants, and settle bills without needing bank account details. Compared to traditional methods like credit cards or net banking, UPI transactions are faster and often free of charge.

Platforms like Bajaj Finserv BBPS make UPI transactions even more convenient, allowing users to pay bills efficiently. With increasing digital adoption, UPI payments continue to grow, making financial transactions more accessible and seamless. Understanding how to pay with UPI ID ensures users can leverage this efficient system for everyday payments.

Disclaimer

1. Bajaj Finance Limited (“BFL”) is a Non-Banking Finance Company (NBFC) and Prepaid Payment Instrument Issuer offering financial services viz., loans, deposits, Bajaj Pay Wallet, Bajaj Pay UPI, bill payments and third-party wealth management products. The details mentioned in the respective product/ service document shall prevail in case of any inconsistency with respect to the information referring to BFL products and services on this page.

2. All other information, such as, the images, facts, statistics etc. (“information”) that are in addition to the details mentioned in the BFL’s product/ service document and which are being displayed on this page only depicts the summary of the information sourced from the public domain. The said information is neither owned by BFL nor it is to the exclusive knowledge of BFL. There may be inadvertent inaccuracies or typographical errors or delays in updating the said information. Hence, users are advised to independently exercise diligence by verifying complete information, including by consulting experts, if any. Users shall be the sole owner of the decision taken, if any, about suitability of the same.

Bajaj Finserv App for all your financial needs and goals

Trusted by 50 million+ customers in India, Bajaj Finserv App is a one-stop solution for all your financial needs and goals.

You can use the Bajaj Finserv App to:

Apply for loans online, such as Instant Personal Loan, Home Loan, Business Loan, Gold Loan, and more.

  • Explore and apply for co-branded credit cards online.
  • Invest in fixed deposits and mutual funds on the app.
  • Choose from multiple insurance for your health, motor and even pocket insurance, from various insurance providers.
  • Pay and manage your bills and recharges using the BBPS platform. Use Bajaj Pay and Bajaj Wallet for quick and simple money transfers and transactions.
  • Apply for Insta EMI Card and get a pre-approved limit on the app. Explore over 1 million products on the app that can be purchased from a partner store on Easy EMIs.
  • Shop from over 100+ brand partners that offer a diverse range of products and services.
  • Use specialised tools like EMI calculators, SIP Calculators
  • Check your credit score, download loan statements, and even get quick customer support—all on the app.
Download the Bajaj Finserv App today and experience the convenience of managing your finances on one app.

Do more with the Bajaj Finserv App!

UPI, Wallet, Loans, Investments, Cards, Shopping and more

GET THE APP

Frequently asked questions

Can I pay with UPI ID without a bank account?
No, a UPI ID must be linked to a bank account to facilitate transactions. Without a linked account, payments cannot be made.

What should I do if my UPI payment fails?
Check for sufficient bank balance, a stable internet connection, and correct UPI ID details. If issues persist, contact customer support.

Is it safe to pay with UPI ID?
Yes, UPI transactions are encrypted and require authentication via a secure UPI PIN, making them highly safe.

Can I link multiple bank accounts to one UPI ID?
While you can have multiple bank accounts linked to different UPI apps, it is not possible to directly link a single UPI ID (linked to a specific bank account) across multiple bank accounts. Each linked bank account will have its unique UPI ID.

Where can I use UPI payments?
UPI payments can be used for online shopping, bill payments, merchant transactions, and peer-to-peer transfers via platforms like Bajaj Finserv BBPS.

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