UPI in the Healthcare Sector: Transforming Patient Payments and Medical Services

The UPI system has brought about a transformative shift in how people manage their payments and fund transfers in India. It offers a swift, secure, and user-friendly method for conducting financial transactions, significantly reducing the reliance on cash-based transactions and contributing to a more efficient and digitized financial landscape.

It has various features, the most attractive one being the UPI pay later, which allows you to buy the product/service now and pay for it at a later date, eliminating the immediate need for funds.

What is a UPI payment app?

It is a mobile app that facilitates instant and secure money transfers between bank accounts. UPI apps have gained immense popularity in India, where they have been instrumental in transforming the payment landscape. 

These apps connect a user’s bank account to a distinctive virtual payment address (VPA). Users can seamlessly send and receive money, settle bills, and conduct online transactions with their VPA. UPI transactions are executed in real-time, and the use of UPI typically incurs no fees.

What is UPI and how does it work?

The Unified Payments Interface (UPI) is a real-time payment system and fund transfer technology meticulously crafted by the National Payments Corporation of India (NPCI). 

UPI revolutionizes how individuals manage their financial transactions by facilitating payments, money transfers, and financial dealings directly from their bank accounts through a mobile app or computer.

Here’s a detailed breakdown of how the UPI system operates:

  • Registration

To embark on the UPI journey, users download a UPI-enabled mobile app provided by their bank or an authorized third-party provider. Upon installation, they register and seamlessly link their bank account to the app.

  • Virtual Payment Address

After a successful registration, users craft a distinctive Virtual Payment Address (VPA). This VPA serves as a distinctive identifier for their bank account and usually takes the format of “yourname@bankname.”

  • Secured PIN

Users bolster the security of their UPI experience by establishing a secure UPI Personal Identification Number (PIN). This PIN is vital for authorizing every transaction, ensuring that each payment or fund transfer is fast and authenticated.

  • Transaction Initiating

Equipped with their VPA and UPI PIN, users unlock the full potential of UPI by initiating a spectrum of transactions, including:

  • Send Money

Users can seamlessly send money to any recipient boasting a UPI ID (VPA) or those associated with a mobile number registered with UPI.

  • Receive Money

By simply sharing their VPA, users effortlessly receive funds from others.

  • Pay Bills

UPI extends its utility by allowing users to pay many bills, from electricity and water bills to mobile recharges and online shopping transactions.

  • Request Money

Through UPI, users can send payment requests to others, making it easy to request funds from associates.

  • Transaction Verification

Before the completion of any transaction, users are prompted to input their UPI PIN to authenticate and validate the payment, adding an extra layer of security to each financial interaction.

  • Immediate Settlement

A hallmark of the UPI system is the real-time processing of transactions. Funds are promptly and securely transferred between bank accounts, ensuring instant and efficient transfers.

How can UPI transform patient payments and medical services?

  • Bill Splitting

A UPI payment app often offers a feature for splitting bills, which is particularly valuable when multiple patients share medical expenses with family members or friends. This functionality simplifies the settlement process, allowing each party to make individual payments seamlessly.

  • Contactless Payments

In healthcare, particularly during health crises like the COVID-19 pandemic, contactless payments through UPI mitigate the risk of virus transmission through physical currency or cards, thereby advocating a safer and more hygienic payment method.

  • Access to Telehealth

It can facilitate payments for telehealth services, enabling patients to engage in secure transactions for virtual appointments with healthcare providers, regardless of their physical location.

  • Insurance Premium Payments

Patients can learn what is UPI and how does it work? And leverage UPI to make timely payments for their health insurance premiums. This ensures the uninterrupted validity of their insurance coverage, providing financial security in times of medical need.

  • Healthcare Subscription Services

UPI empowers patients to subscribe to various healthcare services, including fitness apps, wellness programs, and telemedicine platforms, through the convenience of automated recurring payments, eliminating the need for manual intervention in subscription renewals.

Which is the best UPI payment app?

Without a doubt, Bajaj Finserv! It has been my top choice for all my UPI payments as it provides me with all the facilities and the UPI pay later option. I have used their app for the last four months, and it has been my best decision.


UPI payment apps are poised to transform the healthcare sector by providing secure, user-friendly, and effective payment solutions. In a digital-centric age, UPI facilitates touchless transactions, aids telehealth services, eases expense sharing, and guarantees punctual insurance.