How to Accept UPI Payments for Your Global Business
Joshua D'Costa
Growth & Marketing
Nov 26, 2025
|
5
min
India’s Unified Payments Interface (UPI) has exploded in popularity, and global merchants are taking notice. UPI offers instant, real-time payments and is used by hundreds of millions of Indians. In fact it handles about 84% of India’s digital transactions.
Recent initiatives are linking UPI beyond India’s borders. RBI plans to interlink UPI with Europe’s TIPS instant-payments system and India has joined UPI with Singapore’s PayNow for real-time remittances.
This blog explains what UPI is, why it matters for international businesses, and how a global merchant can accept UPI payments.
What You’ll Learn:
How international customers pay with UPI and why it’s worthwhile for global merchants.
Key integration methods.
Potential risks and compliance considerations for cross-border UPI.
Settlement and currency conversion options for UPI revenues.
What Is UPI?
Source: Wikipedia
UPI (Unified Payments Interface) is India’s real-time payment system created by NPCI and regulated by the Reserve Bank of India. It runs on the IMPS network and lets anyone transfer money instantly between bank accounts using just a smartphone.
In practice, each user gets a unique Virtual Payment Address (VPA) also called a UPI ID and can use a UPI-enabled app to send or receive money without needing account numbers or cards. UPI employs two-factor authentication (mobile PIN/biometric) for security, but the user interface is very simple.
Customers pay merchants with a “single identifier” and can make a secure, immediate payment without entering any bank or card details or switching between apps.
Popular UPI Apps and How Customers Pay
Indian customers use many UPI-enabled apps. The most popular are third-party wallets like Google Pay (Tez), PhonePe, Paytm, Amazon Pay, Samsung Pay, WhatsApp Pay, etc., as well as NPCI’s own BHIM app.
The buyer opens any of these apps on their phone, and initiates a payment by either scanning a UPI QR code or by entering a merchant’s UPI ID/VPA.
For example:
A customer shopping on an international website clicks “Pay with UPI”. Their phone either shows a QR code or launches a UPI intent. The customer then scans that QR code with their UPI app, or the deep-link “invites” their UPI app to open. The app displays the merchant’s name and amount, and the user just confirms with their PIN or fingerprint.
Alternatively, the site can ask the customer to type in the merchant’s UPI handle (merchant@bank), and the user’s app will send the money. In all cases the UPI app handles the authentication and transfer.
Why UPI Matters for International Merchants
Adding UPI to your payment mix can boost sales and cut costs. Here are the key benefits:
Higher Conversion Rates: Indian consumers trust UPI and often complete checkout using it. Because UPI is familiar and easy, shoppers who might abandon cart checkout will happily pay via UPI.
Fewer Declines: UPI payments are bank-to-bank transfers, so they rarely fail compared to international cards. Many foreign credit cards have strict security and may decline in cross-border cases, but UPI bypasses that by using the user’s local banking rails. Merchants typically see fewer declined transactions with UPI than with cards.
Lower Fees: Transaction fees on UPI are usually lower than international card fees. Using UPI, merchants save money on interchange and gateway fees. This is especially attractive to price-sensitive shoppers.
Trusted Local Experience: UPI provides a known, trusted checkout flow for Indian buyers. Offering UPI shows you respect local payment preferences, building customer confidence.
Integration Options
Common integration options include:
Payment Links:
Use a third-party payment provider that offers a hosted UPI checkout like Dodo Payments. You simply direct customers to a secure payment page or send them a UPI payment link via email/SMS.
No complex coding is needed, the provider handles the UPI payment flow. Once the customer pays, the provider notifies you. This is the quickest way to start accepting UPI with minimal dev work.Deep-Link:
On a mobile browser or app, you can trigger the user’s UPI app via a deep link. Essentially, a “Pay with UPI” button opens the UPI app on the user’s phone with the payment details pre-filled.
The user then authorizes the payment in their app, and returns to your site. This provides a seamless mobile UX. If you sell via a mobile app, clicking a UPI button would hand off to, say, PhonePay or Google Pay, and then return instantly.QR Codes:
This works for in-person or cross-channel scenarios. You display a UPI QR code on-screen or print it out, and customers simply scan it with their UPI app camera. The QR encodes your VPA and amount, so the user just confirms payment.
This is ideal for in-person sales or even online: e-commerce sites sometimes show a scannable QR at checkout so the user switches to their phone to scan. UPI’s QR codes follow India’s Bharat QR standard, making them very easy to use globally.API/SDK Integration:
For complete control, integrate UPI via a payment gateway’s API or SDK. Many payment platforms now support UPI. You would use their REST APIs or mobile SDK to create a UPI transaction. This lets you build a native checkout experience in your website or app.
For example, some providers mention offering APIs and SDKs specifically for UPI integration. You can display your own UI, then call the API to collect the UPI payment. Once implemented, this flow works in the background. This option requires more development but yields a fully branded checkout.
Settlement and Risks
When accepting UPI from abroad, keep in mind currency and compliance. Most international gateways settle UPI proceeds in INR to the merchant, converting the foreign amount at prevailing exchange rates.
For example:
If a customer paid in USD via UPI, the gateway would convert and credit your account in INR. Understand the currency conversion markup or fees your provider uses. Some platforms also offer settlement in USD or other currencies, but INR is common.
There are also compliance and risk considerations. Since cross-border UPI often involves remittances, make sure you follow any local regulations. Check KYC/AML requirements for receiving money from India.
Guard against fraud: even though UPI is bank-backed, verify order details server-side. Watch out for chargebacks or disputes if customers claim they didn’t authorize a UPI payment. Work with a reputable payment partner who supports UPI; they usually handle most of the compliance checks and offer 24/7 support.
Conclusion
UPI is a powerful payment option for any international business targeting Indian or other UPI-savvy customers. It’s real-time, widely trusted, and boosts sales while often reducing fees. Adding UPI alongside credit cards and other methods, global merchants can increase conversions and tap a large market of digital-native consumers.
