UPI Escrow Account

byPaytm Editorial TeamLast Updated: October 21, 2025

Definition

A UPI Escrow Account is a temporary account used to hold funds securely during a transaction. It ensures both the sender and receiver are protected until payment confirmation.

How It Works

When you pay through certain UPI services, the amount first moves to an escrow account. Once the receiver confirms the transaction, the amount is released.

Benefit

It minimizes the risk of payment disputes or fraud by holding the money safely until verification.

You May Also Like

EquityLast Updated: December 12, 2025

Meaning & Definition Equity represents ownership in a company. Investors who buy equity shares become part-owners and may…

UPI with Credit CardLast Updated: July 24, 2025

Meaning UPI with Credit Card allows users to link their credit card, especially RuPay cards, to a UPI…

Contactless UPILast Updated: July 10, 2025

Definition Contactless UPI is a way of making UPI payments without touching any physical device like a POS…

UPI App TokenizationLast Updated: October 21, 2025

Definition UPI App Tokenization replaces sensitive account information with a secure token during transactions. Benefit It ensures that…