An Overview
Immediate Payment Service is the IMPS full form, which is an electronic mechanism in India for transferring funds. This system, which was launched approximately nine years ago, has served as a roadmap for launching FinTech that is still in use today. UPI, for example, is a type of IMPS that would not have been conceivable without this technology.
What are the advantages of making IMPS transfers?
Consider the last time you used your phone to make a purchase. The process was rapid and real-time, whether you were buying a new pair of shoes or simply sending money to your relatives. Because of this, IMPS transfers stand out from their predecessors, NEFT and RTGS. Unlike NEFT, which processes payments hourly, and RTGS, which occurs between the hours of 9 a.m. and 2 p.m. (which may vary from branch to branch), IMPS happens when the customer wants it to. Some of the advantages of IMPS are as follows.
- Transactions are made in real time, and payments are made quickly.
This is a feature that has had a significant impact on customer shopping behaviour in India. Furthermore, in the on-demand economy, quick transactions are what make such services the most convenient. Consumers and sellers have come to expect lightning-fast, hassle-free payments at any time. Friends and family who may want money from the sender immediately due to an emergency are not the only ones who benefit from this. Receiving fast payments from clients will also aid India’s growing freelancing sector.
- The procedure is straightforward.
The ease with which certain processes may be implemented is often what contributes to their widespread acceptability. The same may be said with IMPS. Consumers must input all required facts such as name, bank account number, IFSC codes or MMID numbers, and so on when setting up beneficiary data for the first time. You may be able to transfer the appropriate amounts to a beneficiary within 30 minutes, depending on the bank you select. All future payments to the new beneficiary are instantaneous after the first transaction.
- There are no time limits.
NEFT and RTGS are only available during banking hours. They are also affected by national holidays. With IMPS transfers, however, this is not the case. Consumers can send or receive payments at any time because the service is available 24 hours a day, seven days a week. There are no additional IMPS charges on online transfer.
- Consumers have access to a variety of payment options.
While many consumers have become accustomed to making payments with their smartphones, IMPS also works with payment channels that do not require the use of the internet. Aside from online banking and mobile banking, customers can also make payments by text message. They can also use ATMs to do so. As a result, consumers from all socioeconomic groups can potentially use this method of payment.
- The procedure ensures that payments are made in a secure manner.
Before banks approve a transaction, it goes through several rounds of verification. As a result, IMPS is a very secure method of carrying out financial transactions.
Wrapping Up
IMPS has not only transformed customer expectations and behaviour, but it has also cleared the door for the introduction of various forms of fast payment systems in India. The fact that customers don’t need a smartphone to utilise this system adds to its financial accessibility, making it a terrific payment alternative for the people! Visit Finserv MARKETS to know more about it!
