How to Set Up a UPI Merchant Gateway

Registering as a UPI merchant allows businesses to accept digital payments easily. Follow this guide to set up UPI for your business transactions.
How to Set Up a UPI Merchant Gateway
SET UP UPI
5 mins
19 February 2025

What is a UPI merchant gateway?

A UPI merchant gateway is a digital payment solution that enables businesses to accept payments directly through the Unified Payments Interface (UPI). It acts as a bridge between merchants and banking networks, facilitating seamless and instant transactions. UPI merchant gateways integrate with online and offline businesses, allowing customers to make payments via UPI apps.

These gateways support various payment modes, including QR codes, payment links, and embedded checkout options, making transactions efficient and secure. With real-time settlements, robust security protocols, and interoperability across banks, a UPI merchant gateway simplifies digital payments, enhancing customer experience and operational efficiency.

Benefits of becoming a UPI merchant gateway

Instant payments: Receive payments instantly without delays.

Lower transaction costs: UPI transactions often have minimal or no processing fees compared to other payment methods.

Enhanced customer experience: Quick and easy transactions lead to better customer satisfaction.

Wide reach: Accept payments from multiple UPI apps, increasing accessibility.

Secure transactions: UPI follows multi-layered security protocols to prevent fraud.

Automated reconciliation: Simplifies bookkeeping with automatic transaction records.

Easy integration: Compatible with multiple platforms like e-commerce websites, mobile apps, and offline businesses.

Eligibility criteria for UPI merchant registration

Must be a registered business entity (Sole Proprietorship, Partnership, LLP, or Pvt Ltd Company).

Must have a valid business bank account with a UPI-enabled bank.

Should possess a GST registration if applicable.

Must comply with KYC norms and banking regulations.

Should have a secure payment system and adhere to digital transaction guidelines.

Businesses dealing in prohibited or restricted items may not qualify.

Documents required for UPI merchant onboarding

Business PAN Card

GST Certificate (if applicable)

Proof of Business Registration (Incorporation Certificate, Partnership Deed, etc.)

Business Bank Account Details (Cancelled Cheque or Bank Statement)

Aadhaar and PAN of Proprietor/Authorised Signatory

Address Proof of Business (Utility Bill, Lease Agreement, etc.)

Step-by-step guide to setting up a UPI merchant gateway

Choose a payment gateway provider: Select a UPI-enabled payment gateway that suits your business needs.

Register with the provider: Sign up on the provider’s portal and fill in your business details.

submit Required Documents: Upload necessary KYC documents for verification.

Integrate with your platform: Use API keys or plugins to connect the UPI gateway to your website, app, or POS system.

Generate UPI QR code or payment link: Configure your preferred payment mode for easy transactions.

Test transactions: Conduct test payments to ensure smooth functionality.

Go live: Once approved, start accepting UPI payments seamlessly.

Tips for using a UPI merchant gateway effectively

TipDescription
Keep QR codes visibleDisplay QR codes at checkout points for easy scanning.
Enable payment linksShare UPI payment links via SMS, email, or WhatsApp.
Monitor transactionsRegularly check transaction records to avoid discrepancies.
Offer discountsProvide cashback or discounts to encourage digital payments.
Ensure securityUse secure networks and two-factor authentication.


UPI merchant transaction charges and limits

ParameterDetails
Transaction feeGenerally free or minimal charges by banks/gateways.
Daily transaction limitUsually up to Rs. 1,00,000 per transaction (varies by bank).
Maximum transactions per dayAround 20-30 transactions (depends on the bank).
Settlement timeReal-time or within 24 hours


How to generate UPI QR code for your business?

1. Log in to your UPI merchant account.

2. Navigate to the 'Generate QR Code' section.

3. Enter your business details and bank account.

4. Select the UPI apps for which you want the QR code.

5. Generate and download the QR code.

6. Print and display it at your business location.

Unlock the power of UPI merchant gateway with Bajaj Pay

FeatureBenefit
Fast settlementsGet quick fund transfers with minimal delays.
24/7 customer supportDedicated assistance for payment queries.
Secure transactionsAdvanced encryption ensures safe payments.
Easy integrationSeamless API integration with multiple platforms
Customisable payment linksCreate unique payment links for different customers
Cashback offersAvail cashback incentives for high transaction volumes


Disclaimer

1. Bajaj Finance Limited (“BFL”) is a Non-Banking Finance Company (NBFC) and Prepaid Payment Instrument Issuer offering financial services viz., loans, deposits, Bajaj Pay Wallet, Bajaj Pay UPI, bill payments and third-party wealth management products. The details mentioned in the respective product/ service document shall prevail in case of any inconsistency with respect to the information referring to BFL products and services on this page.

2. All other information, such as, the images, facts, statistics etc. (“information”) that are in addition to the details mentioned in the BFL’s product/ service document and which are being displayed on this page only depicts the summary of the information sourced from the public domain. The said information is neither owned by BFL nor it is to the exclusive knowledge of BFL. There may be inadvertent inaccuracies or typographical errors or delays in updating the said information. Hence, users are advised to independently exercise diligence by verifying complete information, including by consulting experts, if any. Users shall be the sole owner of the decision taken, if any, about suitability of the same.

Bajaj Finserv App for All Your Financial Needs and Goals

Trusted by 50 million+ customers in India, Bajaj Finserv App is a one-stop solution for all your financial needs and goals.

You can use the Bajaj Finserv App to:

  • Apply for loans online, such as Instant Personal Loan, Home Loan, Business Loan, Gold Loan, and more.
  • Explore and apply for co-branded credit cards online.
  • Invest in fixed deposits and mutual funds on the app.
  • Choose from multiple insurance for your health, motor and even pocket insurance, from various insurance providers.
  • Pay and manage your bills and recharges using the BBPS platform. Use Bajaj Pay and Bajaj Wallet for quick and simple money transfers and transactions.
  • Apply for Insta EMI Card and get a pre-approved limit on the app. Explore over 1 million products on the app that can be purchased from a partner store on Easy EMIs.
  • Shop from over 100+ brand partners that offer a diverse range of products and services.
  • Use specialised tools like EMI calculators, SIP Calculators
  • Check your credit score, download loan statements and even get quick customer support—all on the app.
Download the Bajaj Finserv App today and experience the convenience of managing your finances on one app.

Do more with the Bajaj Finserv App!

UPI, Wallet, Loans, Investments, Cards, Shopping and more

GET THE APP

Frequently asked questions

How long does it take to become a UPI merchant?
The registration process for UPI merchant services is simple and can often be completed online. Real-time settlement is often offered and depends on the bank.

Can small businesses register for UPI merchant services?
Yes, small businesses can register for UPI merchant services. Digi Khata is an excellent choice, offering a simple online registration process.

How to get a UPI QR code for my business?
Register for Fino UPI to generate your QR code. Display the QR code or share your VPA ID with customers to accept payments. Merchants can integrate UPI through QR codes.

Are there any transaction fees for UPI merchant services?
Generally, UPI transactions are either free or have minimal charges set by banks or payment gateways. This makes it a cost-effective option for businesses.

What kind of support is available for UPI merchant services?
Many providers offer 24/7 customer support to address any queries or issues. Dedicated assistance helps merchants manage payments effectively and resolve problems quickly.

Show More Show Less

Related videos