COVID-19 has pushed local businesses such as Kirana stores and other small proprietorships to undergo a complete digital transformation. With contactless online payments becoming a crucial part of our daily lives, there has been a sharp rise in the use of UPI and digital wallets for day-to-day transactions. UPI transactions have grown nearly 6.7%, from 2.07 billion in October to 2.21 billion in November 2020 alone. Digital payments will row almost twice information and reach $60 trillion by 2022 as the Indian economy recovers from COVID-19. In this blog, we explore UPI and discuss the top 7 ways UPI is helping small businesses navigate the existing business landscape.
What is UPI?
Unified Payments Interface or UPI is essentially a digital money transfer option that is fast gaining popularity. As a powerful mobile app-based system, UPI helps you bring multiple bank accounts on one platform, enabling the fast and effortless transfer of funds. Various mobile payment apps such as PhonePe, PayTM, Google Pay, SBI Pay and others use the UPI payment system.
7 Ways UPI Is Powering Small Businesses
The benefits of integrating a UPI payment gateway in your business aren't just limited to accepting payments from your customers. A reliable UPI payment gateway can power your business in the following unique ways:
1. Useful for small transactions
Unlike debit card transactions, UPI payments have made it possible for small shopkeepers and consumers to carry out low-cost transactions. Additionally, UPI transactions are completely free of cost, whereas Visa and MasterCard still charge 1-2% of the amount as payment to the merchant.
2. Easy Integration
India's best UPI payment gateways are well-known for their quick and seamless integration into websites and apps. Apart from being developer-friendly, they also come with robust APIs and powerful libraries and plugins supporting all major platforms and languages.
Real-time bank settlement
A UPI system offers your online business quick, real-time settlements for all the payments you receive from your customers. Further, you benefit from its higher success route based on dynamic switching between gateways/card networks and intelligent routing.
Privacy of bank account
With UPI systems, fund transfers are possible without disclosing your bank account number or card details, limiting the probability of fraud. Also, the authentication takes place on your smartphone by punching in the UPI PIN so you can easily make it discrete while on your mobile.
One app, many accounts
UPI has empowered business owners to access all their bank accounts in one single place. Linking all your bank accounts to a single UPI app eliminates the need to use different apps for each account. However, you will have to choose a default bank account so that if anyone makes a payment to your UPI ID, the money goes directly to that account number.
Better than wallets
Wallets don't allow business owners to earn any interest on the balance. But when you use a UPI interface, the money remains in the respective bank account itself. This way, you benefit from the interest on the money you keep in the bank account.
7. Smooth and easy to use
Making payments to your merchants and vendors through UPI is easy. You simply need to provide a virtual payment address or VPA to the merchant, and a message will be prompted on the smartphone. Once you approve the payment amount and enter the PIN, the payment is complete.
With so much to offer to your small business, it would not be wrong to say that using UPI as a payment method is a great choice. So, opt for a UPI payment option and offer your customers ease of payments like never before. For more insights on how UPI payments can contribute to the growth of your business, or to take a business loan to help you through the process, visit ontehwaymoney.com today.