UPI vs Wallets(Understand Backend System)

Have you ever wondered why UPI does not have OTP for all payment and Wallets Have !!!

UPI is fastest payment — and lets go in backend to understand it . With UPI — when we first time register -our username ,password , Mobile OTP verification happens and we get a token value stored in system .(This token get internally refresh everytime when you redirect by any payment channel or gateway ) -we dont see it .

Lets take an example that we need to do a payment via UPI ( Suppose from amazon you get redirected to Google Pay Page) . Now you need to

a)first validate yourself by password or Finger print. this process send an API request to Banking system to get that refreshed token that we discussed . This is our first call .

B) now after this — we get a flash of payment (This internally brings us the Bearer token with sessionID, username,password ,token, Token Time to live) . and when we click it -our api gets hit with that token and then further payment get triggered .

You have not entered any OTP or mobile call here in UPI , But in case of wallets or credit debit system -You always see a secure environment and then entering details . As Wallet , Bank payment ,Gateway system , Channels all work in different secure environment where they internally interact with authentication . As it needs real time update -to transact directly from system -they prefer OTP /email authentication/