Merchant UPI

byPaytm Editorial TeamLast Updated: July 11, 2025

Introduction

Merchant UPI is a digital payment solution used by businesses to receive money from customers through the UPI (Unified Payments Interface) system. It allows smooth and secure payments without the need for cash or cards.

Definition

The definition of Merchant UPI is a UPI-based system where a business or service provider accepts payments through a UPI ID or QR code linked to a merchant bank account.

How It Works

Merchants display a QR code or share a UPI ID. Customers scan the code or enter the UPI ID in their UPI app and pay directly. These transactions are known as Peer-to-Merchant (P2M) payments.

Benefits

  • Instant bank-to-bank transfers
  • No need for swipe machines or cards
  • Easy reconciliation of payments
  • Ideal for small and large businesses alike

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