Everything You Should Know About UPI Intent and Collect Flow
5 min read
Sometimes, the simplest solutions end up making the biggest impact. That’s exactly what happened with UPI. The uncomplicated architecture and dependable operation of UPI established it as the foundation of India’s digital payment infrastructure. In December 2024, the value of UPI transactions increased by 35%.
Notably, there was an 8% month-over-month growth, reaching a total of 16.73 billion transactions for the year. These figures highlight UPI’s undeniable dominance as the preferred payment system nationwide. So, how can your online business leverage this rapidly growing digital network?
This is where PhonePe UPI Payment Gateway steps in. By integrating UPI as a payment method, businesses can seamlessly receive payments directly from customers’ bank accounts. With two efficient payment flows – UPI Intent and UPI Collect PhonePe UPI PG makes it simple for businesses to tap into the UPI ecosystem and drive smoother, faster transactions.
UPI Intent is a payment flow that allows businesses to initiate UPI-based payments directly from their application or website. When a user opts to pay, the UPI Intent flow automatically opens the UPI app on their device, pre-fills payment details, and prompts the user to authorize the payment.
Here’s how the flow works:
Customer Action: The customer chooses UPI payment as their checkout method on the merchant’s platform.
App Launch: When the chosen UPI application auto launches, it displays payment details, including the transaction amount and the merchant’s UPI ID, without requiring any manual input.
Payment Authorization: The customer must verify payment information and enter their UPI PIN to complete the transaction.
Confirmation: Confirmation messages are sent to both customers and merchants after payment is successfully completed.
What is UPI Collect ?
The UPI Collect flow is a payment request system initiated by merchants. When a customer selects UPI as the payment method, the merchant sends a “collect” request to the customer’s UPI application. The payment request notification ensures that customers remain in control and maintain security throughout the payment process.
Here’s how the flow works:
Initiate Payment Request: When a customer chooses UPI, the merchant’s system sends a collect request, prompting the customer to enter their VPA (Virtual Payment Address).
Customer Receives Notification: The merchant’s system sends a push notification or SMS to the customer’s mobile device to authorize the payment with their UPI PIN/MPIN.
Payment Authorization: Once the customer enters their PIN/MPIN and approves the payment, the transaction is processed.
Confirmation for Seller: The merchant’s system receives a notification that confirms the payment completion, allowing the order or service to proceed.
Now that you’ve got a solid understanding of what PhonePe UPI Payment Gateway is and how it works, it’s time to take a closer look at the differences between UPI Intent and UPI Collect flows. Knowing these details is key to figuring out which option works best for your business and its unique needs.
Key Differences Between UPI Intent and Collect Flow
Payment Flow Type
UPI Intent Flow
UPI Collect Flow
Payment Initiation
Initiated by the customer
Initiated by the merchant
App Launch
The UPI app auto-launches with pre-filled payment details
The customer receives a notification in their UPI app to approve the request
User Action
The customer reviews details and enters their UPI PIN to complete the transaction
The customer must approve the collect request and enter their UPI PIN
Payment speed
Faster since the customer is directly redirected to the UPI app
Slightly slower as it requires customer approval for the collect request
Common Use Case
Suitable for quick transactions like e-commerce purchases
Ideal for bill payments and recurring services
Both UPI Intent and UPI Collect flows come with multiple benefits, each tailored to different business needs and transaction scenarios. These benefits can significantly enhance the payment experience for both businesses and customers, offering convenience, security, and efficiency.
What are its benefits?
UPI Intent and Collect payment flows enhance operational efficiency and customer satisfaction, while also supporting business growth by addressing a wide range of transactional needs. For example,
E-commerce Platforms
UPI Intent is a game changer for online retailers, streamlining the checkout process. For instance, during flash sales, customers can complete transactions faster, reducing friction compared to traditional payment methods.
During peak seasons like Diwali, UPI enables real-time transactions, helping e-commerce platforms manage high volumes efficiently. While UPI offers a seamless experience, businesses should note that MDR charges still apply to merchant transactions, similar to card payments.
Recurring Services (OTT, EdTech, Fitness)
For recurring payment businesses, UPI Collect is the best fit. For example, automated payment reminders sent through UPI Collect can help ensure up to 90% of renewals are on time, eliminating the need for businesses to manually follow up with customers for payments. This smooth process also reduces churn and improves customer retention.
During high-demand periods, such as EdTech exam seasons or when fitness apps experience New Year resolution spikes, UPI Collect efficiently manages millions of recurring payments without any issues.
The food delivery sector thrives on speed and efficiency, making seamless payments essential. With UPI Intent enabling instant order confirmation, businesses can accelerate order processing, ensuring a smoother experience for both customers and restaurants. Faster transactions lead to improved operational efficiency and higher customer satisfaction.
Additionally, UPI’s secure and trusted framework enhances consumer confidence, encouraging repeat orders and making cash flow more predictable for restaurants and delivery platforms.
Travel and Hospitality
With UPI Collect, travel platforms can offer more payment flexibility whether it’s installments or easy payment links making it simpler for customers to book. Plus, UPI’s reliable system keeps transactions smooth, even during peak holiday rushes.
Given all these benefits, it’s easy to see how UPI Intent and UPI Collect can really make a difference for businesses in various industries. From boosting conversion rates to handling high-volume transactions smoothly, these payment flows bring immense value to the table.
The best part? With the PhonePe UPI Payment Gateway, integrating these powerful UPI payment flows becomes effortless. PhonePe PG offers a smooth, simplified way to adopt UPI, allowing businesses to provide customers with fast, secure, and frictionless payment experiences. By implementing this gateway, businesses can streamline their payment processes, improve customer satisfaction, and scale their operations, all while reducing costs associated with traditional payment methods.
