How to Set Up Merchant UPI on Paytm: Step-by-Step Guide for Businesses

byPaytm Editorial TeamAugust 28, 2025

For merchants—whether you run a shop, a café, or an online business—accepting UPI payments isn’t just convenient, it’s almost mandatory to keep up with customer preferences.

Paytm, one of India’s leading digital payment platforms and an NPCI-certified UPI PSP, makes it seamless for businesses to set up merchant UPI on Paytm and start collecting payments. This blog walks you through the complete, step-by-step procedure to activate and set up UPI on Paytm for both offline stores (QR payments) and online businesses (Payment Gateway integration).

Why Choose Paytm Merchant UPI?

  • Accept payments from any UPI app
  • Quick onboarding with paperless KYC
  • Instant or next-day settlements into your bank account
  • All-in-One QR that works for UPI, and cards (via Paytm Soundbox/POS)
  • Trusted by millions of merchants across India

Prerequisites for Activation

Before you begin, make sure you have:

  • A mobile number linked to your bank account (for OTP & verification)
  • A business bank account (Current Account is recommended for settlements)
  • Basic KYC documents such as:
    • PAN card
    • Business proof (shop registration, incorporation, etc.)
    • GST certificate or non-GST declaration
    • Authorized signatory’s ID/address proof

Path A: Offline Store Setup — Accept UPI via Paytm QR

If you run a physical shop, you can start accepting UPI payments instantly with Paytm for Business.

Step 1: Download and Sign Up

  • Install the Paytm for Business app (available on Android/iOS).
  • Register using your mobile number → verify with OTP.

Step 2: Enter Business Details

  • Add your shop/business name, address, and category.
  • Provide your GSTIN (if registered) or upload a GST declaration (if not).
  • Enter your Current Account details (Paytm auto-fetches if your number is mapped).
  • This is where your UPI payments will be settled.

Step 4: Complete KYC

  • Upload the required KYC documents.
  • Basic KYC enables you to start collecting payments, while full KYC unlocks higher limits.

Step 5: Get Your QR Code

  • The app instantly generates your digital QR code—you can print or share it.
  • You can also order a physical QR sticker or a Paytm Soundbox for in-store use.
  • If you ordered a physical QR, link it through Manage QR Code in the app.
  • Place the QR at your counter and start accepting payments from any UPI app.

Step 7: Verify and Track Settlements

  • Do a test payment to check.
  • Track payments and settlement reports in the Paytm Business app or Dashboard.
  • Settlements usually happen on T+1 day, with options for instant settlement.

Path B: Online Business Setup — Enable UPI on Paytm Payment Gateway

For e-commerce websites, mobile apps, or SaaS platforms, Paytm offers Payment Gateway integration with UPI support.

Step 1: Create a Merchant Account

  • Sign up on the Paytm Merchant Dashboard.
  • Complete KYC and bank account verification to activate your merchant ID (MID).

Step 2: Generate API Keys

  • Go to Developers → API Keys in the Dashboard.
  • Use staging credentials for testing, and production keys after activation.

Step 3: Choose UPI Flow

Paytm supports:

  • UPI Intent → Opens user’s UPI app for faster checkout (recommended for mobile).
  • UPI Collect → User enters UPI ID and approves a collect request.

Step 4: Integrate with Your Website/App

  • Use Paytm’s official SDKs/APIs (available in multiple languages & platforms).
  • Add checkout option → configure UPI as a payment mode.
  • Test transactions in staging before going live.

Step 5: Go Live and Accept Payments

  • Switch to production keys.
  • Customers can now pay via UPI directly on your site/app.
  • Track transactions and settlements from the Paytm Dashboard.

Key Benefits After Activation

  • Zero hassle for customers → payments with just a QR scan or UPI approval
  • Faster settlements → money goes straight into your bank
  • Business growth → more sales since UPI is India’s favorite payment mode
  • Seamless reporting → easy reconciliation with Paytm Dashboard

Setting up Merchant UPI on Paytm is quick, paperless, and scalable—whether you are a local shop owner looking to accept QR payments or an online business integrating UPI into your checkout. With Paytm, you don’t just get a UPI ID—you get a complete merchant ecosystem including QR codes, POS, Soundbox, instant settlements, and payment gateway solutions.

So if you haven’t yet, download Paytm for Business or sign up on the Paytm Merchant Dashboard today and start collecting UPI payments in minutes.

Author

Paytm Editorial Team

The Paytm Editorial Team is a collaborative group of writers, editors, and industry experts. We're dedicated to bringing you the latest insights, news, and guides on digital payments, financial services, and the technology that's shaping India's economy. We offer easy-to-follow guides and insights to help you explore Paytm’s products, features, and services. Our goal is to provide clear, reliable, and helpful information to empower you on your financial journey.

FAQs

Do I need a Current Account to accept UPI payments on Paytm?

A Current Account is strongly recommended for business settlements, but Paytm also allows linking of Savings Accounts for smaller merchants. However, higher transaction limits and features are usually available with a Current Account.

What documents are required to set up Paytm Merchant UPI?

To activate Merchant UPI on Paytm, you need a PAN card along with business proof such as shop registration or incorporation certificate, a GST certificate or a GST declaration if you are not registered, and the authorized signatory’s ID and address proof.

How long does it take to activate Merchant UPI on Paytm?

Digital onboarding is quick. Once you upload the required details and complete KYC online, your account is usually activated within minutes to a few hours.

Are there any charges for accepting UPI payments via Paytm?

Currently, UPI transactions are free for merchants, as per NPCI guidelines. Paytm does not charge MDR (Merchant Discount Rate) on UPI payments.

How soon will I get money from UPI payments?

By default, settlements happen on a T+1 basis (next working day). Paytm also offers instant settlement options for eligible merchants.

Can I accept UPI payments from apps other than Paytm?

Yes. With Paytm’s All-in-One QR, you can accept UPI payments from any app.

Can I integrate UPI on Paytm on my website or mobile app?

Yes. Through Paytm’s Payment Gateway, you can add UPI as a payment option on your online checkout using APIs and SDKs.

How do I track UPI payments received on Paytm?

You can track payments and settlements in real-time using the Paytm for Business app or the Paytm Merchant Dashboard.

Is UPI on Paytm secure for merchants and customers?

Yes. UPI on Paytm is NPCI-certified and follows RBI’s guidelines for security. Transactions are encrypted and protected with multiple layers of authentication.
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