Freecharge has taken covers off from its Unified Payments Interface (UPI) on Monday. The company has launched the service in association with Axis Bank and it equips the users with an option of instant transactions from a smartphone using a virtual payment address (VPA).
In order to enroll to the service, customers need to create virtual address on the Freecharge app and then, they need to link it to their bank account to register on the UPI platform. Shedding some light on the newly launched service, Govind Rajan, CEO, Freecharge said that the partnership allows Freecharge users to pay for transactions from their bank accounts and they don't have to be existing customers of Axis Bank. Customers can create multiple handles/VPA linked to their bank accounts.
When the customer makes the payment using their handle or Axis Bank's VPA, they will be transferring money from their bank account to the merchant or beneficiary account without exposing details such as account number, IFSC code, etc. UPI eliminates the need for merchants to be PCI-DSS certified to store customers' payment credentials as the VPA can be stored against the customers' login.