Banking & Payments

glossaryTermPage.hero.prefix Unified Payments Interface (UPI)?

An instant real-time payment system developed by NPCI that enables peer-to-peer and merchant payments through a single mobile interface across all Indian banks.

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UPI revolutionized digital payments in India by enabling instant bank-to-bank transfers using just a phone number, UPI ID, or QR code — available 24/7 including holidays. It processed over 10 billion transactions per month by 2024. For businesses, UPI enables instant payment collection, reduces cash handling, and provides real-time settlement. UPI supports features like collect requests, recurring payments (UPI AutoPay), and international remittances.

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A customer scans a merchant's QR code on their phone, enters ₹500 payment amount, authenticates with UPI PIN, and the money instantly moves from customer's bank to merchant's bank account.

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Is UPI free for merchants?

Yes, currently zero MDR (Merchant Discount Rate) for UPI transactions as per government mandate. This makes it the most cost-effective digital payment option for businesses.

Can UPI be used for international payments?

Yes, UPI International is available in select countries including Singapore, UAE, France, Sri Lanka, and Mauritius. The transaction is settled in the local currency and debited in INR from the sender's Indian bank account.

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