All the entities involved in the UPI platform

a) The payer is the individual initiating the payment, while the payee is the one receiving
the payment.
b) The beneficiary bank is the bank where the receiver has their account, while the remitter
bank involves the payer's bank and their linked account.
c) The process of customer onboarding will be carried out by the Payer PSP which involves
creating a UPI ID and device binding for first-factor authentication. On the other hand,
the Payee PSP will facilitate money transfer or payment to the recipient using UPI and
initiate the onboarding of customers or merchants.
d) NPCI

The intermediary roles are played by Payer ,Payee PSPs and the Main NPCI UPI agency

Peer-to-Peer and Peer-to-Merchant

Phase I:

To initiate a transaction, the customer can use either the Payee`s mobile number, VPA or QR
code. After that, the Payer PSP will send the request to NPCI, and then NPCI UPI server will
forward the same request to Payee's PSP for authorization and address resolution. The Payee
PSP will resolve the address and provide the account details through the Remitter bank.

Phase II:
After the Payee PSP provides the bank details to UPI, NPCI will check with the Remitter bank to
debit funds from the payer's account. Once the funds are debited, NPCI will send a credit
request to the beneficiary's bank. The beneficiary bank will credit the Payee's account and
respond to NPCI UPI, which will then pass on the transaction status to the customer via Payer's
PSP.