Difference Between UPI and PPI, Which One is Good for Payment

April 7, 2023 New Aware India

Difference Between UPI and PPI- In today’s article, we will talk about the Difference Between UPI and PPI and understand who is the best for us to do online payment today.

Difference Between UPI and PPI

We all know that recently the government has released some new guidelines related to digital payment, according to which now a tax of 1.1% will have to be paid on digital payments of more than Rs 2000. As this news came there has been a flood of information on the Internet, Social Media, and other Internet Blogs. It has been clear that if you make a payment of more than Rs 2000 using only the PPI Payment Method, then you have to pay a tax of 1.1%.

The customer would not have to pay this tax it will be collected from the merchant. After this the customers will be relieved, now they know that they do not have to pay any kind of extra tax. But there are still some questions that are very important for you to know because it is wise to have complete information as incomplete information spreads superstition and complete information creates awareness.

What is the difference between UPI and PPI?

There is a small difference between Unified Payment Interface (UPI) and Prepaid Payment Instruments (PPI), By UPI you can do transactions from your bank account using any of your online apps like Google Pay, Phone Pay, Bhim UPI, etc… You can transfer the money deposited in your Bank Account to someone else’s Bank Account through UPI. If you buy any goods then you can make online payments through UPI.

In PPI, you can create a Wallet on some Online Apps, deposit some money in them in advance, and make payments when needed. It also works exactly like UPI Transactions, the only difference is that instead of using the money from your Bank Account, you use the money kept in the Wallet.

Advantages and Disadvantages of UPI & PPI

Advantage of UPI

You can transfer money directly from your bank account.
Now you can make payments using the money available in your bank 24×7.
There is no need to enter any OTP of any kind.
You can get the information on the Available Balance in your Bank Account.
You can make payment to another person using UPI ID, their Mobile Number, and their Bank Account Number.
Whenever you make a payment through UPI, a Transaction History is created that when and to whom you have paid how much.
Most of the UPI Payment Apps provide you with your UPI ID, but you can also do Transaction with UPI Account created on any other App, for example- You use Google Pay and I use PhonePe, even then you can use your Google Pay and you can transfer money to PhonePay Account, you do not have to pay any extra charge.
QR Scanner- After creating UPI ID, you can also generate your QR so that anyone can pay you, even just by scanning your QR. Or you can make payment by scanning anyone’s QR.
Apart from Transaction History, Person Account History is also shown in UPI Accounts like PhonePay or GooglePay, from which you can also know when and how much money you have transferred to a particular person.
Recharge and Bill Payments- You can also pay Mobile Recharge, DishTV Recharge, Electricity Bill Payment, Gas Payment, Room Rent, etc. through UPI.
Rewards- Many UPI Payments Apps also give you Rewards like Google Pay and PhonePay, if you make payments using them you also get Rewards.

Advantage of PPI

PPI Wallet Provider Companies provide you with the facility to make payments by scanning QR to any merchant.
To create a PPI account, neither you need to have a bank account or any document is required.
If you want to buy some salmon but at the moment you do not have a budget, then you can collect a little money in your Wallet and later you can buy the salmon you need.
Rewards- On making a payment from PPI Wallet, you also get Rewards, which you can also call cashback.
You can also make payments like Mobile Recharge, Bill Payments, etc. from PPI Wallet.
Gift Card- You can also send your money as a gift to your friends so that they can buy gifts.
Online Shopping Websites also provide Wallets such as AMAZON etc. With this, you can create your account on their website or app and do shopping.

Why is 1.1% Tax Taken by the Government?

Now the Government of India understood some things that Private Payment Apps Companies were using others’ money by using them and earning money by providing loans etc. to other people, due to which the Government suffers losses Along with normal people, Extra Charges, Extra Paise were being collected through Late Fee.

But now after applying the 1.1% tax rule, if a consumer deposit more than Rs 2000 in his wallet, then the government will take 1.1% tax from these wallet provider companies, due to which their business of distributing loans has reduced to a great extent. Will be able to go Because now whenever people deposit money in their wallets, then the government will take money from them.

Which one is good for Payment Today

First of all, if we look at the previous data of UPI & PPI Accounts, there are 1% of people who use Payment Wallet. Because through UPI, you can do all the things that you can do with the help of PPI, we believe that UPI is the best for doing Online Transactions in today’s time.

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