As businesses look to streamline their operations, they need to consider various payment options to improve efficiency and reduce costs. One such payment system that has gained widespread popularity in recent years is the Unified Payment Interface (UPI). This mobile-based payment system allows users to transfer money instantly, securely, and seamlessly without the need for bank account details.
With UPI payment, businesses can enjoy faster payment processing, reduced transaction costs, and improved customer satisfaction. This article will explore the benefits of UPI payment for businesses and why it is essential to consider this payment system for your business.
Popular examples of UPI Payment apps include PhonePe (Android | iOS), Google Pay (Android | iOS), Amazon Pay (within Amazon app) (Android | iOS), BHIM (Android | iOS), Freecharge (Android | iOS) alongwith ICICI Bank’s InstaBIZ app. ICICI Bank also offers custom services for online UPI payments, including the Smart Checkout feature – a one-step process to receive all payments, similar to UPI. Whether your customers wish to shop online, pay utility bills, or renew their insurance premiums, you can receive all payments with a few taps.
Reasons to use UPI in your business
Here are some of the main reasons to use UPI for your business transactions –
Easy Online Payments
UPI facilitates easy online payments by allowing users to link their bank accounts to a UPI ID and transfer funds instantly. It eliminates the need for providing bank account details or other payment-related information. UPI also support multiple payment options, such as QR codes, payment links, and mobile number-based payments, making it easy for businesses to accept customer payments.
Cashless
Besides ease, the biggest benefit of UPI is reducing the cash transactions for businesses. You might be well aware of the security issues associated with carrying cash to the bank. Now, with UPI, the money gets transferred to your bank account instantly from the UPI app.
Security
Digital payments through UPI are safer than card-based online payments or cash payments. This payment process enables secure fund transfers through Virtual Payment Address (VPA) or a UPI ID. Also, the UPI payment enhances security through two-factor authentication and end-to-end encryption.
Fits All Business Use-Cases
UPI payment system is a versatile payment solution that fits all business use cases. UPI’s interoperability feature enables businesses to accept payments from customers who are using different banks or UPI apps. It supports instant refunds and provides real-time notifications for transactions, making it easier for businesses to manage their payments. Furthermore, UPI’s low or no transaction fees and quick fund settlement make it an attractive payment option for businesses of all sizes, from small retailers to large corporations.
The Standard Method to Make a UPI payment
Making a UPI payment is a quick and easy process that can be done using a mobile device with an active internet connection. Here are the steps to follow:
Step 1: Download a UPI-enabled payment app from Google Play Store or Apple App Store.
Step 2: Register your mobile number with the app and link your bank account.
Step 3: Create a UPI ID and set a PIN to secure your transactions.
Step 4: To make a payment, select the ‘Send Money’ option and enter the recipient’s UPI ID or mobile number.
Step 5: Enter the amount you wish to transfer and verify the details before proceeding.
Step 6: Enter your UPI PIN to authorise the transaction.
Step 7: Once the payment is successful, you will receive a confirmation message on your mobile.
It’s important to note that UPI also supports QR code-based payments, which can be done by scanning the QR code with your UPI-enabled payment app and following the same steps as above.
Conclusion
Businesses can benefit greatly from using UPIs due to its speed, security, and cost-effectiveness. It’s a convenient payment solution that can streamline transactions and improve customer satisfaction.
