How to Add a UPI Payment Gateway

With the rapid growth of eCommerce, many businesses are setting up online stores to sell their products and services. One crucial aspect of running an online store is providing your customers with secure and convenient payment options.

Unified Payments Interface (UPI) is a popular payment method in India that allows for instant and seamless transactions. In this article, we will discuss how to integrate a UPI payment gateway into your online store.

What is UPI?

Unified Payments Interface (UPI) is a real-time payment system developed by the National Payments Corporation of India (NPCI). UPI facilitates instant inter-bank transactions by transferring funds between two bank accounts on a mobile platform. This payment method is available 24/7 and is gaining popularity among users and merchants alike due to its simplicity and speed.

Why Integrate a UPI Payment Gateway into Your Online Store?

UPI is a highly secure and convenient payment method that enables swift and seamless transactions. Its popularity is growing rapidly—according to NPCI, UPI processed over 14 billion transactions in January 2025 alone. By offering UPI payments at your online store, you can attract more customers and boost sales. UPI payments are quick and easy to carry out, making them ideal for impulse purchases, which can significantly increase your store’s revenue.

UPI Payment Gateway Integration Process

Integrating a UPI payment gateway into your online store requires some technical knowledge, but it’s not overly complicated. Below, we outline the steps to integrate a UPI payment gateway into your online store.

1. Choose a Suitable UPI Payment Gateway Provider

To begin, you need to select a UPI payment gateway provider that supports your business type and offers the desired features. Here are some popular options:

  • Paytm: Paytm offers a robust payment gateway with UPI integration, competitive fees (typically around 1.5%-2% per transaction), and easy setup for businesses of all sizes.
  • Razorpay: Known for its developer-friendly APIs and seamless UPI support, Razorpay charges approximately 2% per transaction and provides excellent customer support.
  • CCAvenue: One of India’s oldest payment gateways, CCAvenue supports UPI and offers customizable solutions with fees starting at 1.9% per transaction.

Ensure that the provider you choose offers a seamless integration process, competitive transaction fees, and reliable customer support.

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2. Sign Up and Complete the KYC Process

Once you’ve chosen a provider—say, Razorpay—sign up for their services by visiting their website and creating an account. You’ll need to complete the Know Your Customer (KYC) process, which typically involves submitting scanned copies of your business registration documents (e.g., GST certificate, PAN card) and bank account details. The provider will verify your documents and approve your account, usually within 1-3 business days.

3. Install Required Plugins or Extensions

If you’re using a popular eCommerce platform, integrating UPI is made easier with plugins or extensions. For example:

These plugins simplify the process and allow you to add UPI payment functionality without extensive coding knowledge.

4. Configure UPI Payment Gateway Settings

After installing the plugin or extension, configure the UPI payment gateway settings in your store’s admin panel. You’ll need to enter your UPI Virtual Payment Address (VPA), a unique identifier like yourbusiness@upi that enables UPI transactions. You can generate a VPA through UPI-enabled apps such as Google Pay, PhonePe, or BHIM. Link your bank account to the app to get started.

For instance, if you’re using Razorpay, log into your Razorpay dashboard, generate API keys, and input them into your plugin settings along with your VPA.

5. Test the UPI Payment Functionality

Before going live, test the UPI payment functionality on your online store. Most providers, like Paytm, offer a sandbox environment where you can simulate transactions. Perform a test purchase using a UPI app (e.g., scanning a QR code or entering a VPA) and verify that funds are credited correctly. Adjust settings if any issues arise.

Enhancing the UPI Payment Experience

To make the most of UPI payments, consider these tips to enhance the payment experience for your customers:

  1. Offer Multiple UPI Payment Options: Provide flexibility by allowing payments via UPI ID, apps like Google Pay or PhonePe, or UPI-linked bank accounts.
  2. Optimize the Payment Process: Ensure the UPI payment flow is simple—minimize steps and avoid unnecessary redirects to improve success rates.
  3. Promote UPI Payments: Encourage usage with incentives like a 5% discount or cashback rewards for UPI transactions.

Conclusion

Integrating a UPI payment gateway into your online store can significantly improve your customers’ shopping experience and boost your sales. By offering a secure, convenient, and instant payment method through providers like Razorpay, Paytm, or CCAvenue, you can attract more customers and drive impulse purchases. Follow the steps outlined in this article to integrate a UPI payment gateway into your online store and enjoy the benefits of this popular payment method.

Frequently Asked Questions

1. What is a UPI payment gateway, and how does it differ from other payment methods?
A UPI payment gateway allows customers to pay directly from their bank accounts using the Unified Payments Interface (UPI), a real-time payment system developed by the National Payments Corporation of India (NPCI). Unlike traditional methods like credit cards or net banking, UPI enables instant transfers using a Virtual Payment Address (VPA) or mobile apps like Google Pay, making it faster and more convenient.

2. Which UPI payment gateway provider should I choose for my online store?
It depends on your business needs. Popular options include Razorpay for its easy integration and developer-friendly APIs, Paytm for its wide reach and competitive fees, and CCAvenue for customizable solutions. Compare their transaction fees (typically 1.5%-2%), integration process, and support to find the best fit.

3. Do I need technical skills to integrate a UPI payment gateway?
Not necessarily. If you use platforms like WooCommerce, Magento, or Shopify, you can install plugins like the Razorpay WooCommerce plugin or Paytm Shopify app to simplify the process. However, basic knowledge of your store’s admin panel is helpful for configuring settings.

4. How long does it take to set up a UPI payment gateway?
The setup time varies. Signing up and completing the KYC process with providers like Razorpay or CCAvenue typically takes 1-3 business days. Installing and configuring the gateway on your store can take a few hours, depending on your platform and familiarity with the process.

5. Are there any additional costs for using a UPI payment gateway?
Yes, most providers charge a transaction fee, usually between 1.5% and 2% per UPI transaction. For example, Paytm and Razorpay have similar fee structures, though some may offer lower rates for high-volume businesses. Check with your chosen provider for exact pricing and hidden costs like setup fees.

6. How can I ensure UPI payments are secure for my customers?
UPI is inherently secure, using two-factor authentication (e.g., UPI PIN) and bank-grade encryption. To enhance security, choose a reputable provider like CCAvenue or Razorpay, test the payment flow for vulnerabilities, and ensure your website uses HTTPS. Educate customers to avoid sharing their UPI PINs.

7. Can I use a UPI payment gateway if my business is outside India?
Currently, UPI is primarily available for Indian bank accounts and businesses registered in India. However, some countries like Singapore and UAE have started collaborating with NPCI for cross-border UPI support. Check with providers like Razorpay to see if they offer solutions for international merchants accepting payments from Indian customers.

8. What happens if a UPI transaction fails on my online store?
If a UPI transaction fails—due to issues like incorrect VPA or insufficient funds—the payment won’t process, and the customer will see an error message. Providers like Paytm usually notify you via their dashboard. Ensure your store has a clear refund policy and test failure scenarios in the sandbox environment beforehand.

9. Can I accept UPI payments without a website, like through a mobile app or social media?
Yes, UPI supports payments via QR codes or direct VPA links, which can be shared on platforms like WhatsApp or Instagram. For example, PhonePe offers QR code solutions for small businesses. Contact your payment gateway provider to generate a collect request or QR code for such transactions.

10. How do I handle customer disputes over UPI payments?
If a customer disputes a UPI transaction (e.g., claiming non-delivery), contact your payment gateway provider—such as CCAvenue—with the transaction ID. They’ll coordinate with the customer’s bank via NPCI’s dispute resolution process. Keep records of order confirmations and delivery tracking to resolve issues quickly.

11. Is there a limit to the amount I can accept through UPI payments?
Yes, UPI has transaction limits set by banks and NPCI. As of February 2025, the standard limit is ₹1 lakh (about $1,200 USD) per transaction, though some banks may impose lower caps (e.g., ₹50,000). For high-value transactions, check with your provider or consider splitting payments across multiple transactions.

12. Can I integrate UPI payments with my existing POS system for in-store purchases?
Yes, many UPI gateway providers offer omnichannel solutions. For instance, Razorpay provides POS integration with UPI QR codes, allowing customers to pay in-store using apps like Google Pay. Confirm compatibility with your current POS hardware before proceeding.

Ecom Weaver is an e-commerce research and development firm. It provides custom E-Commerce solutions, consultancy services, and training for entrepreneurs.

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