To accept UPI payments, an Indian business can use a QR code, a UPI payment link or collect request, a payment gateway on its online store, or a POS app — and for person-to-merchant payments there are no merchant fees today. UPI is the default way most Indian buyers pay, so accepting it well is one of the highest-impact things a seller can do. Here’s how to set it up.
What is UPI?
UPI (Unified Payments Interface) is India’s real-time payment system that lets customers pay instantly from their bank account using a phone — by scanning a QR code, tapping a payment link, or approving a collect request. With hundreds of billions of transactions a year, it has become the everyday payment method for Indian shoppers, online and in-store.
Ways to accept UPI payments
| Method | Best for | How it works |
|---|---|---|
| QR code | In-store, markets, counters | Customer scans your static or dynamic QR and pays from any UPI app |
| Payment link / collect request | WhatsApp, Instagram, remote sales | You send a link; the customer taps and approves the payment |
| Payment gateway | Online stores and checkouts | UPI appears as an option at checkout alongside cards and wallets |
| UPI on POS | Retail with billing | The POS generates a dynamic QR or request for each bill |
| UPI AutoPay | Subscriptions, EMIs | Customer authorises recurring debits up to a set limit |
Most sellers combine two or three — a QR code at the counter, payment links for WhatsApp orders, and a gateway on the website.
How to set up UPI for a small business
- Get a UPI ID linked to your bank or current account, or sign up with a payment provider.
- Generate a QR code for in-store and printed use.
- Add UPI at online checkout through a payment gateway or an India-ready commerce platform.
- Enable payment links so you can collect from WhatsApp and Instagram buyers.
- Reconcile daily — match settlements to orders so nothing slips through.
Is accepting UPI free?
For person-to-merchant (P2M) UPI transactions, there is currently no MDR (merchant discount rate) — so basic UPI acceptance is effectively free for merchants. This is a major advantage over cards, which carry processing fees. Payment gateways may still charge for value-added services, faster settlement, or other payment methods, so check what’s bundled.
UPI vs cards vs COD
| UPI | Cards | COD | |
|---|---|---|---|
| Merchant fees | None (P2M) today | ~1–2% typical | Courier/COD fees + RTO risk |
| Speed | Instant | Instant | On delivery |
| Buyer reach | Very high in India | Moderate | High in Tier 2/3 |
| Failed/lost payments | Low | Low | Returns add cost |
The practical answer for most Indian sellers: offer all three. UPI as the default, cards for those who prefer them, and COD to reach buyers who don’t pay online yet.
Reduce failed payments and reconciliation headaches
- Use a reliable gateway with automatic retries.
- Show a clear success/failure status so customers don’t double-pay.
- Offer fallback methods at checkout.
- Reconcile settlements daily and watch for pending transactions.
How QuicShop helps
QuicShop is UPI-native: UPI, cards, wallets, COD and Pay Later are built into checkout, with webhook-driven order confirmation so paid orders are recognised automatically. You can also send payment links for WhatsApp and Instagram orders. Because it’s built for India, you’re not bolting a payments plugin onto a foreign platform — it works the way Indian buyers already pay.
Frequently asked
How can a small business accept UPI payments?
You can accept UPI through a static or dynamic QR code, a UPI payment link or collect request, a payment gateway on your online store, or a POS app. Most sellers use a QR code in-store and a gateway or payment link online.
Are there any charges for accepting UPI payments?
For person-to-merchant (P2M) UPI transactions there is currently no MDR (merchant discount rate), so basic UPI acceptance is effectively free for merchants. Payment gateways may charge for value-added services, settlement, or other methods like cards.
Do I need a current account or payment gateway for UPI?
A QR code linked to your UPI ID can settle to a personal or current account for simple in-store use. For online stores, subscriptions, or automated reconciliation, a payment gateway or aggregator with a current account is the better setup.
Can I accept UPI for recurring or subscription payments?
Yes. UPI AutoPay lets customers authorise recurring debits up to a set limit, which is useful for subscriptions, EMIs and memberships.
How do I reduce failed UPI payments?
Use a reliable gateway with retries, show clear payment status, offer fallback methods like cards and COD, and reconcile settlements daily so failed or pending payments are caught quickly.