In the current swiftly evolving digital environment, it is crucial for enterprises to remain ahead in terms of payment technology. The Unified Payments Interface, or UPI, has significantly transformed how transactions occur within the nation. As a business owner, comprehending the process of UPI integration can provide fresh opportunities for effortless, effective, and safe payment collection on their website or mobile application.
Introduced by the National Payments Corporation of India in April 2016, UPI has reshaped India's financial landscape, and Juspay has been a prominent contributor to this journey. From designing and building the BHIM app along with core UPI 2FA SDK in 2016 to launching credit cards on UPI solutions for both issuing and acquiring partners in 2022, Juspay has evolved along with the evolution of UPI.
From 2 million monthly transactions in December 2016 to more than 11 billion monthly transactions in November 2023, UPI transactions have taken a huge leap. Today, Juspay is powering more than 25% of all the UPI transactions in the ecosystem. With TPAP/merchants like Google Pay, Cred, Amazon, Swiggy, Uber and many more trusting Juspay for powering their UPI payments, it is safe to say that we are one of the most reliable names in the UPI payments ecosystem.
With this article, we want to delve deep into the world of UPI payment gateways, unraveling the various facets of integration and exploring its profound significance. From its pivotal role in promoting financial inclusion to security and efficiency, we will elucidate why UPI integration is not just an option but a strategic necessity for businesses seeking success in India's dynamic digital economy.
Understanding UPI Payment Gateway Integration
UPI payment gateway integration enables a merchant to collect UPI payments from its customers through its website or app. In order to understand UPI payment gateway integration, let's first look at all the entities involved in this integration process:
Third-Party Application Provider (TPAP) - TPAPs, as the name suggests, build and provide UPI-based applications to the payer. TPAPs like Amazon Pay, Google Pay, etc., onboard users on their applications and enable them to make payments through UPI.
Payment Service Provider (PSP) - PSPs are intermediaries that act as a bridge between the UPI network and the users. PSPs use their own app or a TPAP to onboard users on the UPI platform. If you are a UPI user, you can see a suffix attached to your VPA, for example, @axisbank, @ybl, etc. This suffix is generated by the PSP after onboarding.
Similarly, PSPs are also responsible for onboarding merchants and enabling them to collect UPI payments. PSPs provide merchants with credentials like merchant UPI ID, MCC code, etc., which the merchants can use to start API integration and collect payments post-integration.
National Payments Corporation of India (NPCI) - NPCI acts as an administrator of the UPI platform. It is responsible for defining the rules, regulations & guidelines of UPI. NPCI defines the roles and limitations of all the entities involved in the UPI ecosystem to offer a secure, efficient, and reliable UPI network to the users.
Now that we have explained the UPI payment gateway integration and the entities involved in it. Let’s take a look at different types of UPI payment gateway integration:
Types of UPI Payment Gateway Integration
UPI payments can be collected by any website/app in three ways. Let’s look at the different types of UPI integration that a UPI payment gateway can provide -
1. UPI collect - UPI collect flow is a type of UPI integration where the payee initiates the transaction; for example, if a customer is making a payment on an online shopping website/app, the website/app will create a UPI collect request, the customer will then have to enter their VPA and complete the payment.
Let’s take a look at the entire UPI collect flow
Step 1 - Once the customer lands on a payment page, the first step is to enter a valid UPI Virtual Payment Address (VPA)
Step 2 - A payment request is then triggered by the UPI payment gateway along with a notification by the UPI Payment Service Provider (PSP) to the entered UPI VPA
Step 3 - The customer needs to accept the payment request and complete the transaction by entering their MPIN (Mobile Personal Identification Number)
Step 4 - Once the customer makes the payment, he/she then has to manually go to the respective website/app to check if the merchant has received the payment.
This type of payment integration provided by the UPI payment gateway has a tedious flow as the effort put in by the customer to complete the payment is high. There are various touch points like entering the VPA or accepting the payment request sent on a UPI PSP app like Google Pay, PhonePe, Paytm, etc, where the customer can drop off before completing the payment.
2. UPI intent - UPI intent, as the name suggests, is initiated by the payer. This type of UPI integration uses UPI Payment Service Provider (PSP) apps like Google Pay, PhonePe, Paytm, etc., already installed on a payer’s device to complete payment.
Once the customer lands on the payment page of a website/app, the customer is automatically redirected to their selected UPI PSP app where they can complete the payment, post that the customer will be auto-redirected back to the website/app. This type of UPI payment integration provides the customer with a higher level of convenience as it reduces the number of touch points where the customer can drop off.
Let’s take a look at the entire UPI intent flow
3. UPI plug-in SDK - UPI plug-in SDK is the latest addition to the UPI payment gateway integration ecosystem. It enables businesses to collect payments within their app. This is the most convenient way for customers as it allows them to make payments in just two steps, reducing the time taken to complete the payment to just 5 seconds.
Let’s take a look at the UPI plug-in SDK flow journey
You can provide your customers a seamless experience with native UPI Payments in your app with Juspay HyperUPI. HyperUPI allows your app-based business to collect payments without redirecting your customers to any other UPI app offering a completely In-app UPI payment experience to your customers.
Click here to offer your customers the best UPI payment experience.
How to Integrate UPI Payment Gateway in Your Website/Mobile App?
Having discussed the significance of UPI integration, let's now explore the practical measures for introducing this digital payment solution to your website or mobile app. We'll break down the process into straightforward, actionable steps, ensuring that individuals can readily follow along regardless of their level of technical familiarity.
Step 1: Choose a UPI Payment Gateway Provider
Consider this step as selecting a trustworthy partner for your digital payment journey. UPI payment gateway service providers vary in their offerings, so invest the necessary effort to discover the one that aligns most effectively with your specific business requirements.
Considerations When Choosing a Provider:
Integration Support: Ensure the UPI payment gateway provider offers seamless integration options for websites and mobile apps.
Transaction Fees: Compare the fees charged by different providers. Look for a balance between cost and features.
Security Features: To safeguard your customers' information, examine the presence of strong protective measures, such as encryption and multi-layered authentication.
Compatibility: Ensure the provider's services align with your existing systems and technology.
Downtime: A merchant should look at the downtime of UPI payment gateway i.e. the amount of time where the payment provider is unavailable to process payments.
Success rate: Success rate is the most important quantifier of a UPI payment gateway’s performance. Success rate refers to the percentage of successful transactions with respect to the total number of transactions attempted by the customers.
Settlement support: Payment gateways provide settlements in real time or in different settlement cycles (for example - T+2 days, which means 2 days after the transaction is made). A merchant should opt for a payment provider which provides settlements according to their business needs
Operational Support: Support & visibility provided by the payment gateway for the entire transaction lifecycle including dashboards, alerts, and other operational communication
Now that we have informed you about the key parameters to consider while choosing a UPI payment gateway, let's see where Juspay stands on these parameters.
Juspay powered payment gateways offer 99.99% uptime to its merchants, a success rate of more than 90% with 0% technical declines and a transaction processing time of less than 0.1 seconds. Juspay’s UPI payment engine has the capacity to process more than 25,000 transactions per second for your business.Juspay powered UPI payment gateways provide 24*7 monitoring with real-time alerts, powerful analytics and reliable support. On top of that, These systems have the capacity to process settlements in multiple cycles including real-time. Combined, Juspay is a powerful payments engine that processes more than 110 million UPI transactions daily.
Click here to learn more about Juspay UPI suite of solutions
Step 2: Registration and Documentation
Before accepting UPI payments, you must register with your chosen provider. This typically involves submitting some documentation.
KYC (Know Your Customer) Documents: These can include your business registration documents, identity proof, and address proof.
Banking Information: Establishing a connection between your business's bank account and the UPI payment gateway is essential.
Business Information: You should be ready to furnish details about your business, encompassing its name, location, and contact information.
Step 3: API Integration in UPI payment gateway
APIs (Application Programming Interfaces) are essential bridges enabling your website or app to interact with the UPI payment gateway. If you need to be better-versed in coding, this is the juncture where seeking guidance from a developer or your technical experts can be valuable.
Key Points to Consider During API Integration:
Testing Environment: Most providers offer a testing environment where you can ensure everything works correctly before going live.
Customisation: Depending on your business's unique needs, you might need to customize the payment gateway's appearance and functionality to match your website or app's design.
Error Handling: Plan how to handle errors or issues that may arise during transactions. A smooth customer experience is essential.
Step 4: Testing
Before going live with the UPI payment gateway, it's crucial to test it thoroughly. This step helps identify and rectify any glitches or errors.
Testing Checklist:
Transaction Tests: Conduct sample transactions to ensure that payments are processed correctly.
Compatibility: Test the gateway on various devices and browsers to ensure universal compatibility.
Security: Verify that all security measures are functioning as intended, including user authentication.
Step 5: Go Live
After you've reviewed and are content with the test outcomes, it's the moment to activate the UPI payment gateway on your website or mobile app.
Here are Some Pointers for a Successful Launch:
Communicate: Inform your customers about the introduction of this new payment method through your website, social media platforms, and other promotional avenues.
Customer Assistance: Ensure your customer support team is adequately equipped to aid customers with any payment-related questions or complications.
Monitor Performance: After going live, keep an eye on the performance of your UPI integration. Address any issues promptly.
Incorporating UPI payment gateway into your website or mobile app can transform your business's payment process, making it more convenient and secure for your customers. This step-by-step guide ensures you can confidently navigate this digital transformation, benefiting your business's growth and success.
Why Integrating UPI Payment Gateway Is Crucial for a Business?
Businesses are constantly searching for ways to thrive and grow. One of the most significant steps you can take towards this goal is integrating a UPI payment gateway into your operations. But why is this so crucial for your business? Let's explore the need for it:
Meeting Customer Expectations
UPI accounts for over 75 percent of all retail digital transactions in India. With 330 million unique users, it is safe to say that UPI is the most preferred payment method. From ordering food to booking tickets, customers are accustomed to using UPI. They expect the same convenience when shopping with any other merchant. By offering UPI payments, you align your business with your customers expectations.
Wide Range of Payment Options
With the introduction of wallet interoperability and credit cards on UPI, UPI payment gateways can now support multiple payment methods beyond savings account transactions. Now a customer can pay via different payer account types like Credit Card, PPI wallet, credit line. This versatility allows merchants to cater to a broader customer base with diverse payment preferences.
Reducing Operational Costs
Conventional payment approaches frequently entail significant transaction charges. In contrast, UPI transactions take a relatively lower toll from merchants. This implies potential savings on each transaction, ultimately enhancing your financial outcomes.
Streamlined Transactions
UPI payments are quick and hassle-free. This can help online businesses in eliminating cash handling. For example, Instead of giving an option of cash on delivery, businesses can offer pay on delivery to their customers, enabling them to pay via UPI at the time of delivery.
Customer convenience
UPI payments are known for their speed. And now, with the introduction of in-app UPI payments through plugin-SDK, customers will be able to make payments within 5 seconds.
Comprehensive Merchant Support
Most UPI payment gateway providers offer dedicated merchant support. This means you can get assistance quickly if you encounter any issues or have questions about the UPI integration as well as the operation process.
The world is changing rapidly, and so are your customers' preferences. Gone are the days when a customer had to enter their debit card or net banking details to make a payment through their bank account. Today, people want convenience, speed, and security when making payments. This shift in consumer behavior makes integrating a UPI payment gateway not just a choice but a necessity.
Juspay: Your Trusted Partner for UPI payments
Integrating digital payment solutions like UPI can be a game-changer for businesses, but the process can seem daunting. That's where Juspay comes in.
With Juspay’s Hyper UPI any merchant app can now become a UPI app and offer customers a completely In-app UPI payment experience. Customers will no longer have to depend on any other app to complete UPI transactions since these payments can now be completed on the Merchant’s App itself.
FAQs About UPI Integration on Your Website/Mobile Apps
1. Why is UPI integration important for businesses?
UPI integration is crucial as it widens your customer base, offers convenience, enhances security, reduces costs, and simplifies financial management.
2. How do I integrate a UPI payment gateway into my website or app?
Choose a reliable UPI payment gateway provider, complete the onboarding process, integrate their APIs into your platform, test thoroughly, and then go live with the integration.
3. Is UPI integration suitable for small businesses?
Yes, UPI integration benefits businesses of all sizes, including small enterprises. It provides cost-effective and efficient payment options.
4. What are the primary advantages of using a UPI payment gateway over traditional payment methods?
UPI payment gateways offer advantages such as faster transactions, lower fees, enhanced security, wider customer reach, and simplified financial management compared to traditional methods.
5. Can I integrate a UPI payment gateway on both my website and mobile app simultaneously?
Yes, most UPI payment gateway providers offer solutions that can be seamlessly integrated into both websites and mobile apps.
6. Are UPI payments safe for my customers?
Yes, UPI payments are highly secure, featuring robust authentication measures and encryption to protect your customers' financial information.
