How to Create a UPI ID for a Business

As India continues its shift toward digital payments, more merchants and businesses are turning to UPI for business transactions. Whether you’re a local retailer, freelancer, or large enterprise, using UPI business apps can streamline your collections, enhance cash flow, and offer customers a frictionless payment experience.

In this guide, we’ll explain what a UPI business account is, the benefits it offers, and how to create a UPI ID for a business in simple steps.

What is a UPI Business Account?

A UPI business account (also known as a merchant UPI account) is a UPI-enabled digital payment setup designed specifically for business transactions. It allows merchants to:

• Receive payments directly into their bank accounts
• Accept money via QR code, mobile number, or UPI ID
• View and reconcile transactions in real-time

In short, UPI for business simplifies fund collection, reduces dependency on cash, and eliminates card-handling risks.

Benefits of UPI for Businesses

Here are some top UPI business account benefits:

• Low to zero transaction fees
• Instant payment settlements
• Secure two-factor authentication (2FA)
• Detailed transaction reports and insights
• Available 24/7 with no bank holidays
• Flexible payment options — UPI ID, QR, phone number
• No need for POS machines or cards
• Reduced operating cost vs. cash and card systems
•  Improved checkout experience (especially in e-commerce)

Whether you run a kirana store, online brand, or a restaurant, using UPI business apps helps you serve customers faster and smarter.

How to Create UPI Business Account in Paytm For Business

Follow these steps to open a UPI business account using any trusted UPI business app like Paytm for Business

Step 1: Download a UPI Business App

Install an app like Paytm for Business from Google Play or App Store.

Step 2: Register with Mobile Number

Enter your mobile number (linked with your bank account) and verify it via OTP.

Step 3: Link Your Bank Account

Select your business bank account from the list and allow auto-verification. This account will receive UPI payments.

Step 4: Set UPI PIN & Generate QR Code

Create your UPI PIN (if not set already). The app will generate a business UPI QR code and a unique UPI ID (e.g., shopname@bank).

Step 5: Start Accepting Payments

Print or display your QR code at your store or share your UPI ID to begin collecting payments.

That’s it! Your merchant UPI account registration is complete.

Are There Any Charges for UPI Business Accounts?

Most UPI business apps offer free onboarding and zero UPI charges for merchants, especially when payments are received via QR codes into bank accounts. Always check with your payment service provider for updated UPI merchant charges.

So, is a merchant UPI account free? Yes, in most cases.

Tips to Boost UPI Payment Success for Businesses

To improve UPI performance and reduce failures:

• Ensure stable internet connectivity
• Use a reliable smartphone or payment device
• Provide multiple payment modes (QR, mobile number, UPI ID)
• Display your QR prominently at billing points
• Keep your app updated to the latest version

UPI Across Business Categories

• Retail Stores: Accept quick UPI payments via QR and reduce dependency on cash.
• Online Sellers: Enable seamless in-app payments and reduce cart abandonment.
• Restaurants & Cafés: Speed up bill settlements and increase table turnover.
• Delivery & Logistics: Avoid COD hassles and get instant payment confirmation.
• Travel & Hospitality: Collect hotel bookings and service fees digitally.
• Healthcare: Enable urgent UPI payments for medical services.
• Utilities & Services: Accept UPI for bill payments, recharges, and discounts.