One of the most common digital payment modes in recent times is UPI. UPI, the short form for Unified Payments Interface, is an online payment solution that brings together multiple bank accounts under the roof of one mobile application. Its popularity can be attributed to how it simplifies the payment process. With just a few clicks, several banking features can be put to convenient use via UPI. Since its inception in April 2016, UPI payments have seen an uphill trend in their usage, as can be inferred from the latest statistics. A UPI payment gateway can give an edge to businesses accepting UPI payments owing to its popularity in the consumer market. This blog discusses in detail how merchants can accept payments through UPI and gain a competitive advantage.
Decoding the UPI edge
One question that most merchants ask when it comes to UPI payments is, “What makes UPI payments so unique?”
The answer lies in its simplicity.
Despite being more seamless than traditional payment methods, all online payment modes are not very easy to use. For example, the customer has to type in the credit card number, card holder’s name, expiry date, and the CVV to pay via credit cards. An OTP verification follows this. To pay via net banking, one has to know the payee’s account number, and they have to be added as a beneficiary, which can take up to 8 hours.
UPI streamlines this payment process by reducing the steps required to push the transaction. It has made transactions quicker, less time-consuming, and limited only to a few clicks. Zaakpay’s UPI payment gateway does this without compromising on the user’s security. This is possible by introducing a VPA or Virtual Payment Address. It is a unique identifier that points towards the customer’s bank and initiates a transaction directly. Suppose the online payment gateway supports UPI payment. In that case, the customer can now choose the preferred UPI application and process the payment after authenticating the transaction through an MPIN (Mobile banking Personal Identification Number).
Benefits of accepting payments via UPI
Quick Payments Processing
The ability to pay via UPI reduces the purchase time significantly for the consumer. It simplifies the payment connection between the customer’s bank and the business account. There’s no need to enter payment information time and again or load money into some virtual wallet, as with mobile wallets. Satisfied customers are always good news for the business as it translates to the retention of customers and passive promotion through word-of-mouth.
Multiple Payment Modes
The number of UPI applications in use today is incredibly high. Every bank has its own application supporting UPI. There are also a few common third-party applications that support multiple banks. This exposes the business to a vast network of customers. After all, reaching out to more and more customers is the dream of any business. UPI makes that happen. With the UPI payment gateway, the business breach geographical boundaries and reach out to customers pan India.
Higher Success Rate
Payment failures are highly uncommon when it comes to UPI. This is due to the solid technological network that backs the UPI system. With UPI, businesses need not worry about dealing with failed transactions. This also equates to more content customers who are likely to purchase more.
UPI identifies individuals through a unique identifier called VPA. This hides the bank and other details of the individual and makes the process more secure and safe from online frauds, leading to increased sales. Merchants will also be less prone to being deceived. Fraudsters can get access to somebody’s card details or net banking and make fake purchases, but this is not possible with UPI. The mandatory regulatory compliance for the online payment gateway adds additional layers of security to the process.
How to accept UPI Payments using Zaakpay?
A business needs to sign up for a UPI payment gateway service for accepting UPI payments, like Zaakpay. It is a simple process that involves registering with Zaakpay and verifying the bank account details. The merchant can choose either of the two services offered by Zaakpay – payment gateway and payment links.
A payment gateway best caters to the needs of businesses with a website, while payment links cater to all types of businesses and freelancers. The charges of the gateway are nominal and affordable to all categories of the business. In the case of a gateway, it would have to be integrated into the business website. Once the system is ready, the merchant is all set to accept payments via UPI after activating the merchant account. Zaakpay takes around twenty-four hours to activate the merchant account after verifying all the information about the business.
Zaakpay also offers features to customize the checkout page with the branding of the business. The merchant should use this to make the gateway familiar to the customers. There are several other features that merchants can use to streamline their payment process further.
There is a huge scope for businesses to utilize the power of UPI to improve their payment process. This is the right time to capitalize on this scope and set up an online payment gateway that caters to the needs of a huge potential customer base. With Zaakpay, businesses can offer the optimal payment experience to their customers by giving them a choice to pay via UPI since many users might be reluctant to pay via cards online, fearing online frauds.