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  • Category: Banking

    How does phone pe (payment) app work

    Wondering how phone pe payment works? Find suggestions from experts on this page.

    There is a mobile application called phone pe payment service powered by YES bank.
    When I registered, it asked which bank I wish to link. I clicked on State Bank of India logo and automatically it showed my account number.
    I want to know how they got to know my account number. If they can know my account number then how can I feel safe of using that application?
  • Answers

    2 Answers found.
  • Your phone number is linked to the bank account. So they detect your phone number and find it in the UPI database. Now your phone number, aadhar card and some other documents are part of KYC details. So it's easy for them to find you through the phone number. Unless you are using the unlinked phone number, in such case it'd be harder for them to find your account number.

    It is safe to use phone pe or any other UPI app. Just make sure that you are not adding the amount largeer. Because security issues usually affect such wallet sites and app. So only add the money which you can spend and add on the need to use basis. Otherwise just keep the wallet empty for most of the time.

  • PhonePe app work with the concept of Unified Payment Interface (UPI). It is a payment method initiated by the National Payments Corporation of India (NPCI) with the support from Reserve Bank of India and Indian Banks Association (IBA). It avoids the traditional online transfers using Account Name, Account Number, IFSC code.,etc., With UPI, its enough if you know the recipient's Virtual Payment Address (VPA). It can be said that UPI payment method is an advanced version of IMPS ( Immediate Payment Service ). As of today, 29 banks have agreed to use this service. Your bank could be one of them.

    In this payment method accounts from all the banks and mobile numbers are at one place. When the SMS is sent from your mobile for verification, it finds the details of associated bank accounts as well. So, when you just click on your bank name, it will automatically show your account number. The UPI service uses same network which is used for IMPS transactions. Moreover, a two factor authentication is done for all UPI transactions. For each transaction, your MPIN is verified whether it is matching with your VPA. Only then the transfer happens.


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