UPI vs BHIM: Know the Difference Between BHIM and UPI

It has become so intimately entangled in Indian lives that, today, digital payments have become a part and parcel of everyday life. As an offspring, UPI is the most prominent fruit of that process. However, many people mistake UPI and BHIM for being the same, when in fact, they are not. Both play an important role in making payments easy, though they’re not identical. This article will break the differences down between BHIM and UPI, so you get a clearer picture of how they work and which one serves you better in managing online transactions.

What is UPI?

UPI, which stands for Unified Payments Interface, is an extremely convenient way to send and receive money. Designed by the National Payments Corporation of India (NPCI), it lets you transfer funds between bank accounts without needing to enter all your account details every time. Instead, you get a UPI ID- like a virtual address for your money. Additionally, you can link up multiple bank accounts to one app, making finance management easier for you. Whether you are splitting a bill, paying at a store by scanning a QR code or making a transfer, UPI has it all done within seconds, 24/7.

Advantages of UPI

UPI has many benefits that will make taking care of your finances as seamless as possible:

• Seamless Integration with Accounting: UPI fits perfectly with accounting systems, helping both individuals and businesses keep track of their money effortlessly. It simplifies financial management, so one never really loses track of anything.
• Access to Multiple Accounts: With UPI, you can access multiple bank accounts through a single application. You can easily change between all the accounts available to you and carry out all finance transactions in one place.
• Simplified Fund Management: UPI brings an end to all the hassle attached to sending and receiving money. It streamlines the transactions in such a way that they are fast, easy, and not cumbersome with complicated processes.
• Bill Payment and Subscriptions: With UPI, bill payments and subscription management become very easy. Utility and service bills can be scheduled for automatic payment, thus avoiding any due dates.
• Reduced Transaction Costs: Most UPI transactions are low-cost or even free, making it an economical option compared to traditional payment methods. This is especially beneficial for businesses looking to save on transaction fees.
• Cashback and Rewards: With most UPI apps available, cashback and rewards become pretty tempting. Not only do they make digital payment all the more attractive but also give you a little extra for spending on your everyday needs.

What is BHIM?

BHIM, which stands for Bharat Interface for Money, is a simple, government-backed app also powered by the UPI platform. This was to bring digital payment culture all across India, thereby making all the transactions cashless. BHIM App is very intuitive as it allows people to use a phone number, UPI ID, or QR code to send money just with a few taps. BHIM also lets you check your balance, view your previous transactions, and even enjoy rewards such as discounts and cashback. It is known to be safe and reliable and widely accepted everywhere- from every local shop to an online store.

Advantages of BHIM

UPI brings a host of benefits as well:

• Government-Backed Reliability: BHIM is supported by the Indian government, so you can trust that your money is in safe hands. It lets you send money straight from your bank account without any middlemen, which means faster and more secure transactions.
• Universal Bank Compatibility: The best thing about BHIM is the fact that it supports any bank offering UPI. This means you can immediately link your existing current account without much ado. So very convenient indeed.
• Wide Acceptance: You will see that BHIM is largely accepted by numerous merchants and service providers. Whether it is groceries or just paying for services online, BHIM can be used, making life easier.
• Aadhar-Based Money Transfers: If you happen to have someone's Aadhar number, sending them the money is a cakewalk. Just input the number, and you're ready to go. It is quick and efficient to manage payments.
• Offline Transaction Capability: It saves you when you are out there and need to make some payments, but don't have access to the internet.
• No Transaction Fees with BHIM: BHIM doesn't charge you any fees for your transactions. You can send and receive money without any hidden costs, making it an economical option for your digital payments.

Difference Between BHIM and UPI

While both BHIM and UPI are designed for digital payments, their approach and purpose differ slightly.

BHIM is an application that makes digital payment very simple and hassle-free, aimed at those seeking simplicity. It boasts a straightforward interface that gives users fast access to transactions. UPI, on the other hand, is the backbone of most applications, especially BHIM. It facilitates real-time transfers from one bank account to another and is under the oversight of the RBI and IBA, so more adaptable and reachable through various channels. Here’s a quick breakdown of their differences:

UPI vs BHIM

FAQs

1. Is BHIM UPI Good for Transactions?

   Absolutely! BHIM UPI is great for secure and easy transactions. It’s simple to use, supports multiple banks, and lets you make quick payments with just a few taps on your phone.

2. Is BHIM More Secure Than Other UPI Apps?

   Both BHIM and other UPI apps follow the same security rules set by the RBI. How safe they are depends on things like your passcode strength, your bank’s security measures, and how careful you are while using digital payments.

3. Which Should I Choose: BHIM or Another UPI App?

   The choice depends on your needs. If you want a straightforward, no-fuss app that does the basics, BHIM is ideal. If you prefer additional features, such as rewards and different user interfaces, you may prefer using another UPI app like Google Pay or PhonePe.

4. Are There Any Fees Associated with Using BHIM or UPI?

   No, there are no fees for using BHIM or UPI. Transactions are free. However, it’s always a good idea to check with your bank, as they might charge for specific services related to UPI transactions.

5. Can I Link Multiple Bank Accounts to BHIM and UPI?

   Yes, both BHIM and UPI allow you to link multiple bank accounts.