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A Quick Guide to Accepting UPI Payments for Your Online Business

3 min read

Unified Payments Interface (UPI) has become a game changer in the Indian digital payment landscape, with transaction values exceeding Rs. 20 trillion in May 2024. This highlights a significant shift in customer preferences, making it essential for businesses to accept UPI payments to remain competitive. 

If you’re a business owner looking to accept UPI payments online, worry not. Integrating UPI payments into your online business is a simple process. All you need to do is follow a few simple steps to facilitate seamless UPI transactions for your customers.

What is UPI?

A Unified Payments Interface (UPI) is a payment system that facilitates instant fund transfers across bank accounts. It is an integrated payments interface established by the National Payment Corporations of India (NPCI) and is regulated by the Reserve Bank of India (RBI). UPI makes it easier and faster to transfer money between bank accounts by connecting them through a single, user-friendly app.

Read more: Unified Payments Interface (UPI) Explained: Meaning, Features, and How It Works

How Does UPI Work? 

UPI functions as an app that lets you transfer money from one bank account to another in just a few seconds. It relies on existing systems like Immediate Payment Service (IMPS) and Aadhaar Enabled Payment System (AEPS) to ensure smooth transactions. UPI allows users to send or receive money without debit or credit cards, making payments more secure and hassle-free.

With UPI payments, users can complete transactions within minutes using their UPI ID, QR code, or mobile number, eliminating the need to enter the recipient’s bank details. This convenience has made UPI an inevitable tool for making payments for both business and personal transactions.

How to Accept UPI Payments for Your Online Business?

You can accept UPI payments from customers through several methods:

  • Collect Flow: In this method, customers need to manually enter their UPI-linked mobile number or Virtual Payment Address (VPA) during checkout. After entering this information, they need to open their UPI app to complete the payment. Once the payment is confirmed, they will be redirected to the business website or app.
  • Intent Flow: This method allows customers to select their preferred UPI payment app during checkout, and the app automatically launches on their device. They can simply authenticate the transaction without entering any details for a seamless payment experience.
  • In-App Flow: With this method, you can enable customers to complete transactions directly within your e-commerce app without switching to a third-party UPI app.
  • Omnichannel Flow: In this method, customers need to enter their mobile number instead of a VPA and complete the payment after a two-factor authentication.
  • Google Pay SDK: This is similar to intent flow and allows customers to complete payments directly within the app. This eliminates the need to switch to a separate UPI app, ensuring a smooth payment experience.

In Conclusion 

UPI offers a seamless and secure method of conducting transactions within your business. Its flexibility ensures transactions are processed quickly without having to constantly re-enter account information, making it more convenient for customers. It also allows you to accommodate different client preferences with a variety of payment alternatives, such as QR codes, payment links, and in-app purchases, with just a few easy steps.

By exploring the best UPI payment gateway options, such as PhonePe Payment Gateway, you can provide fast, reliable, and secure payment options, boosting customer satisfaction.