Launched in 2016, the Unified Payments Interface (UPI) crossed 1 billion transactions for the first time in October 2019. This flagship payments platform of the NPCI (National Payments Corporation of India) created a record in the volume of transactions and value in July 2021 as digital payments escalated during the pandemic with a whopping 3.24 billion transactions in July. In terms of value, transactions worth Rs 6.06 trillion were processed in July.
According to the RBI’s latest data, in the span of a year, UPI transactions had more than doubled. The curbs and restrictions triggered by the pandemic have significantly contributed to the steady growth in UPI transactions as people have started using the platforms for almost everything – from their daily needs to luxury purchases and everything in-between.
Whether you’re a well-established small business or start-up looking to ride the UPI wave, here are some things you need to keep in mind:
1. Encourage UPI for COD
India has always been largely a cash-based economy. Though a significant percentage of buyers have adopted digital payments, the Cash on Delivery (COD) mode still remains the most-used payment method on e-commerce websites and online marketplaces. Since many brands today interact with their users via WhatsApp, email, or SMS, they can use these channels to send out UPI payment links for COD orders. This will help businesses and online marketplaces process payments for COD orders faster.
You can even encourage a QR-code-based payment via any UPI app, similar to what Flipkart has recently done.
Apart from faster payment processing, UPI for COD will also facilitate faster-automated refunds, thanks to the UPI infrastructure.
2. Use UPI Autopay
If your business needs to collect recurring payments (say, insurance premiums), you can start using UPI Autopay. Your customers will just need to enable recurring payments over a bank account or debit card via E-mandate through any UPI app. You can also use virtual accounts to collect payments via Paytm, Google Pay, WhatsApp, etc. To do this, you’ll just need to create virtual UPI IDs and bank accounts. In this way, settlements and payments can be processed on the same day. If your e-commerce business is running on a subscription model where you need same-day settlement and immediate reconciliation of user accounts, UPI Autopay could be just what you need.
3. Encourage big or small purchases with UPI Flexipay
Your existing and potential customers may not always have adequate money in their bank accounts and yet, they would prefer to live their lives the way they want to. This could include making bigger purchases like splurging on a holiday, buying furniture, ordering gifts for festivals, getting that designer dress or pair of shoes, buying the latest model of smartphone, etc. To encourage such purchases, you can offer your buyers UPI Flexipay options.
They’ll need to make a certain down payment on their purchases while the rest amount is converted into EMIs, which they can pay over a certain period with any UPI app. Such flexible and hassle-free repayment options will ensure you have a steady inflow of customers throughout the year.
4. Understand UPI Intent flow
In the UPI Intent flow, your customers choose UPI as their payment method on your application or website, which displays a list of UPI apps supporting the Intent flow. After your customers have chosen their preferred app, it’ll open to show their pre-populated payment details. Once they enter their UPI PIN, these customers can complete their transactions. After their payment is successful, these customers will be redirected to your app or website.
Thus, by enabling UPI Intent on your website or application checkout, you can make UPI payments easier for your customers. To understand more about how you can enable UPI intent flow for your website with Xpresslane checkout, write to us at firstname.lastname@example.org
With the above pointers, you can surely position your business favourably to make the most of the growing use of UPI.
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