UPI, more generally known as Unified Payments Interface, has increased to further limits in 2021. As contactless digital payments are becoming a significant part of our lives, there has been a quick growth in the usage of digital wallets and UPI for businesses or individuals for regular transactions and for businesses too.
Most of the customers in India now choose UPI for online payments due to different reasons, such as:
- Runs on IMPS and is accessible 24×7
- Customers can start transactions from any UPI application
- The comfort of transfers with implicit payment addresses
- Can be interoperated
- No additional charges to be compensated by the customers to use UPI for online payments
It is significantly an online money transfer alternative that is fast becoming popular. As a competent mobile app system, UPI for business assists you in bringing manifold bank accounts on a single platform, allowing quick and easy fund transfers. Different mobile payment applications, for example, PayTM, PhonePe, GPay, and others employ the Unified Payment Interface.
9 Ways UPI Is Proving Advantageous for Businesses
The advantages of incorporating UPI in your business are not just restricted to receiving payments from your clients. A trustworthy UPI can strengthen your business in the unique ways given below:
1. Helpful in small transactions
Contrary to debit card transactions, UPI has made it feasible for businesses, shopkeepers and customers to complete low-cost transactions. In addition, UPI transactions are totally free of charge, whereas other apps still charge 1% to 2% of the sum as payment to the seller or merchant.
2. Simple integration
The best UPI payment gateways are recognized for their fast and flawless integration into sites and applications. Rather than being helpful for developers, they also come with powerful APIs, libraries and plugins sustaining all big interfaces and languages.
3. Bank settlements in real-time
A UPI system provides your online business with speedy, real-time bank settlements for all the payments you get from your clients. Additionally, you gain from its increased success pathway depending on potential switching amongst gateways or card networks and smart routing.
4. Secrecy of bank accounts
With UPI systems, transferring funds is feasible without showing your bank account or card information, restraining the fraud possibility. Also, verification occurs on your smartphone by feeding the UPI PIN. Thus, you can simply make it distinct when on your mobile phone.
5. Eases digital payments
A Unified Payment Interface will help you consolidate business payments with immediate authentication and transfer of money. With this payment method, customers can reimburse directly from their bank account without providing bank account or card information. Here, the VPA or Virtual Payment Address is used to make payments via the UPI. Additionally, customers can pay through their chosen UPI apps that help UPI flow.
As a business holder, you would like to give your customers a flawless shopping and payment experience, which is probable by incorporating UPI for online payments. It also allows you to offer a proficient checkout experience to customers who want to pay through their smartphones via any of the UPI-connected accounts.
6. Many accounts in a single app
UPI has furnished business owners with access to all their bank accounts in a single place. Connecting all your bank accounts to one UPI application removes the need to use different applications for every account. After all, you will require to select a default bank account; thus, if anyone sends a payment to your UPI ID, the money goes straight to that account number.
7. Effective than wallets
Wallets do not offer any interest on the balance to business owners. But when you employ a UPI interface, the money stays in the specific bank account itself. Doing this benefits you from the interest on the amount you keep in your bank account.
8. Simple-to-use interface
Making payments to your vendors and merchants via UPI is effortless. You just need to give the merchant a VPA or virtual payment address, and a message will be delivered on the mobile phone. Once you authorize the amount and insert the PIN, the payment is successful.
9. Increased payment security
Various customers ignore online transactions or payments using cards due to security issues. That’s the reason why several businesses also do not accept digital payments. Furthermore, if you consider the online payment acceptance rate, 1/3 of Indian houses now follow digital payments in one or the other form.
Business owners now depend on UPI for online payments as it assures the safety of payment transfers. This mobile-based payment process employs UPI ID or VPA for payment transactions. Also, two-factor verification and end-to-end encoding make it secure for digital payments for both consumers and businesses.
With many things to provide to your business, it will not be incorrect to say that UPI’s use as a payment process is the choice. So, choose UPI for business and give your customers a simplicity of payment than never before. For more information on how UPI payments can add to the growth of your business, refer to Nimbbl.