How UPI is different from NEFT, IMPS, and MMID

Unified Payment Interface (UPI) is a mobile based payment system which allows transferring money in real time 24x7. The USP of UPI is that funds are transferred without entering your card/bank account details, the net banking password, and even the CVV number.

National Electronic Funds Transfer (NEFT) has been the most common way of transferring funds till date. However, you can use NEFT only in those banks which are NEFT-enabled.

Immediate Payment Service (IMPS) is a mobile payment program which enables the customers to transfer funds from their smartphones. For an IMPS transaction, you need the same details as NEFT (account number, bank holders name, and IFSC code) but the payment is made instantly.

MMID stands for Mobile Money Identifier, and it is a 7-digit number. Once a user has registered their MMID with their bank, you can use that MMID to transfer funds through IMPS. While UPI, NEFT and IMPS are a way to transfer money, MMID is a special identification id which makes it possible for you to transact safe payments without sharing your actual bank details.

Difference between UPI and NEFT, and IMPS

UPI, NEFT and IMPS are different services to transfer funds online but vary significantly. Lets find out how:

Cheapest way

UPI- This is the cheapest way for transferring money as it charges less than INR 0.50 per transaction.

NEFT- You need to pay a minimum of INR 2.50 per transaction.

IMPS- For each transaction, you are required to pay INR 5.00.

No card details required

UPI- No details like the bank account number, card number, or the IFSC code is required. Customers get a virtual payment address (VPA) similar to an email ID, e.g. rakesh21@icicibank. Just check the availability of the username you want to use in the VPA and you are done.

NEFT- You need the bank account number, IFSC code, and the customer name.

IMPS- Same details as NEFT.

More secure

UPI- As no bank account or card details are given for transactions, the personal data is safe and unknown to the remitter.

NEFT- The bank account details are known to everyone you owe or receive money.

IMPS- You need to provide the bank account details for fund transfer.

Instant transfer

UPI- Payments are credited and debited immediately from the respective bank account.

NEFT- Before you can transfer funds, the beneficiary should be added as payee in your bank account, which might take from half an hour to 24 hours.

IMPS- The service is available 24x7, and the money can be transferred immediately. UPI uses the same IMPS technology.

Universal App

UPI- You can link multiple bank accounts from different banks to one single UPI app on your mobile.

NEFT- You need to install your banks mobile app for financial transactions.

IMPS- Same as NEFT.

Choose your UPI app

UPI- You may have an ICICI bank account, but you may use the UPI app of SBI bank.

NEFT- It is limited to the banks website or app.

IMPS- Same as IMPS.

Immediate payee registration

UPI- The registration is done immediately.

NEFT- The registration of a new payee can take up to 24 hours, depending on the bank you use

IMPS- With the help of MMID, immediate registration happens. But if you use bank account number and IFSC code, then it takes the same amount of time as NEFT.

Money Collector

UPI- UPI app sends your debtor a notification for the same. Your debtor has to approve the UPI notification to transfer funds to your account.

NEFT- No such feature is available.

IMPS- There is no such facility.

UPI has emerged as a revolutionary step in the world of digital payments, especially for the mobile payments systems.