The current pandemic has made digital payments the new normal. In this sense, the Unified Payments Interface (UPI) is a godsend.
This instant real-time payment facility can be considered the best financial innovation post-Independence in India and is contributing significantly to the cause of replacing cash in our economy. Moreover, it is helping our country become one of the fastest-growing digital economies in the world.
According to the latest data compiled by the National Payments Corporation of India (NPCI), as of July 2021, the total volume of UPI transactions has jumped to 3274.82 million transactions, worth Rs. 6,06,281.14 crore. This is a YoY (2020-2021) growth of a whopping 108.67% in the total value of transactions.
The number of banks that have adopted UPI has increased from 164 in July 2020 to 235 in July 2021. In April 2016, when the platform began operations, only 21 banks were on board.
Being one of the largest players in the UPI ecosystem, Paytm Payments Bank powered 387.85 million customer-initiated transactions worth Rs. 46,406.52 crores in the month of July this year.
Why UPI payments?
UPI has made life easier for end-users and increased their confidence in digital payments with its highly secure technology and ease of use. However, it also offers a lot of benefits to businesses, some of which are:
- By integrating a UPI-enabled payment gateway, you will be able to accept customer payments directly into your chosen bank account(s)
- With a UPI-enabled payment gateway, you will be able to offer UPI as one of the payment options to all your customers without having to invest additional time, money and effort into enabling this technology
- When you offer UPI to your customers on your website/app, your customers experience very few redirects, which helps reduce cart abandonments
- UPI-enabled payment gateways ensure high transaction success rates by fetching and displaying the customer’s Virtual Payment Address (VPA) automatically on the checkout page.
Why choose Paytm Payment Gateway to power UPI transactions for your online business?
Paytm Payment Gateway is preferred by thousands of small and medium-sized online businesses because of the following reasons:
1. Offers intuitive UPI flows for a frictionless payment experience
- UPI Intent: Allows customers to pay from any UPI PSP app on their smartphone without having to juggle between the merchant app, UPI app, and SMS
- UPI InApp: Displays UPI-associated bank accounts of customers directly on the merchant app, thereby offering an enhanced payment experience
- UPI Collect: Makes accepting online payments easier and more secure by encouraging customers to enter their preferred VPA addresses
2. Give customers the freedom to pay via their preferred payment option
Being one of the leading service providers of UPI-enabled payment gateway for small and medium-sized businesses in India – Paytm offers comprehensive UPI solutions to online businesses looking to improve their business payments.
Our UPI-enabled payment gateway allows merchants to accept payments using their business website/app directly into their bank account. Similarly, customers can pay via their preferred methods like:
- UPI ID (VPA): Allows customers to pay via UPI ID on the merchant’s payment page during checkout
- UPI Apps: Allows customers to pay via their preferred UPI app on their smartphone
- UPI-linked bank accounts: Allows customers to pay directly from their bank accounts linked to their Paytm account
3. Industry-high transaction success rates
According to a report published by the National Payments Corporation of India (NPCI) in December 2020, Paytm Payments Bank had the lowest technical decline rate at 0.02% among all UPI remitter banks and 0.04% among all UPI beneficiary banks.
With Paytm having its own payment gateway, banking services and UPI as a payment source, there is seamless integration between these three services. As per NPCI’s data for June 2021, Paytm Payments Bank enjoyed a success rate of 93.1% and technical decline rate of 0.10% for UPI transactions.
Paytm enjoys direct integration with the top six banks and 15 bank gateways. It significantly reduces the transaction time, time spent on manual inputs and dependency on mobile networks. From a customer perspective, this drastically improves their experience and ensures stickiness.
4. Get access to Paytm’s vast customer-base
With the Paytm UPI InApp flow, your online businesses will get access to 100 million+ UPI-associated bank accounts of existing Paytm users. It also enhances the end-user experience by displaying their UPI-associated bank accounts directly on the app.
Since it only involves two steps for processing payments, the transaction time reduces by 0.3x times. Moreover, the success rate goes up by 1.3x compared to the other two flows – UPI Intent & UPI Collect.
5. ZERO transaction charges
Paytm Payment Gateway does not charge anything for UPI transactions. Yes, you heard it right. You get to enjoy 0% MDR for lifetime on UPI payments.
The rise in digital payments in India has led to tremendous growth in customer transactions via UPI.
UPI is also a convenient method for small and medium businesses to collect customer payments as it enables instant collection of customer payments 24×7, even on bank and public holidays.
UPI enables businesses to immediately accept payments directly into their preferred bank account once the customer confirms the payment.
Moreover, there is no payment limit on the business side for accepting the UPI payments. This is a lucrative proposition as, with Paytm, businesses do not have to pay any charges for payments accepted through UPI.
Want to accept UPI payments on your business website/app? Sign up now!