Are UPI and digital wallet the same?

No, UPI and digital wallets are different. UPI (Unified Payments Interface) is a bank-linked system that facilitates instant, direct bank-to-bank transfers using a Virtual Payment Address (VPA) or QR code, without needing to preload money. A digital wallet acts like a prepaid account, requiring users to first add funds from a bank account or card before spending. UPI transactions are typically direct, whereas digital wallets often act as an intermediary.