It looks very convenient from User interface or front end to pay via UPI ID or Mobile number without sharing any account details with your friend or Payer but there is always fear while fetching your account details, bank balance or UPI Pin on any third-party non-banking application.
Is it safe to pay via any app ? Yes, you should use only NPCI / RBI approved payment service provider app only. (This list can be checked on NPCI website).
NPCI, the UPI regulating body has taken all measures into consideration while any involvement of third party / foreign entity into payment system.
No actual account number flowing to third party application and only hashed value getting passed to avoid account number access.
There will be always two factor authentications. i.e. first one is User’s device and second UPI PIN.
UPI Pin will be entered on NPCI common library which doesn’t have direct access to third party app and only encrypted details of pin can be passed via systems.
Now, the fraud can be happened only if user shares above two authentications with fraudster by any means. E.g. SIM Spoofing or Debit card and OTP details sharing or direct UPI pin sharing etc.
NPCI added few more blocks to even restrict such type of frauds by various checks while device binding with PSP. iOS 6s and below devices and OS 13.4 & below device will be blocked for UPI usage in few days. User should complete device registration within 30 sec time of SMS initiation to avoid SMS data sharing to fraudster by any chance.
NPCI suggests that users should pay attention to messages from their bank. Know the difference between a password, PIN and an OTP and carefully examine the message to stay protected. Also, keep a note of all the messages from the bank to make sure you’re aware of all the transactions to and from your account.
So, use any UPI App of choice to avail different payment services like easy money transfer pay utility bills such as electricity, mobile phones, broadband, etc. buy and renew insurance policies, make donations to relief funds, recharge mobile phones, DTH connection and metro cards, book movie tickets, bus and train tickets, etc. Payment of bills at restaurants, kirana stores and other physical stores can also be done with UPI.