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PaymentsJune 24, 2026FindThatSoftware Team

How to Accept UPI Payments on Your Website in India (2026 Guide)

A practical, current guide to accepting UPI payments on your website in India: the three ways to do it, why UPI is nearly free to accept (zero MDR), the Collect vs Intent flow, and how to set it up with a payment gateway.

UPI is how India pays - it is fast, familiar, and for most businesses almost free to accept. If you sell anything on a website, accepting UPI at checkout is no longer optional. The good news: setting it up is simpler and cheaper than most first-time founders expect. Here is the practical, current version.

The three ways to accept UPI on a website

  1. A UPI QR code or VPA. The simplest option - generate a QR linked to your UPI ID (e.g. business@ybl) and let customers scan and pay. Great for invoices, social selling and offline, but clunky for a real website checkout because the customer has to leave the page, pay, and you have to reconcile manually.
  2. Payment links. Most gateways let you create a hosted payment link (shareable over WhatsApp, email or SMS) with no code. Ideal for service businesses, freelancers and small order volumes.
  3. A payment gateway at checkout. This is the real answer for a website store. You integrate a gateway (Razorpay, Cashfree, Instamojo, PayU and others) via a plugin or API, and UPI shows up as a payment option alongside cards, net banking and wallets, with automatic reconciliation and settlement.

For a proper website checkout, go with option 3. The rest of this guide focuses there.

Does accepting UPI cost anything?

Mostly no - and this surprises people. Standard bank-to-bank UPI runs on a zero-MDR (Merchant Discount Rate) regime in India, in place since January 2020. That means there is no per-transaction merchant fee on normal UPI payments. Small merchants can even earn a government incentive of about 0.15% on transactions up to Rs.2,000.

Two honest caveats:

  • A payment gateway may still charge you. UPI itself is zero-MDR, but a gateway can charge a platform fee, a setup fee, or fees on other methods (cards and net banking do carry MDR). So your real cost depends on your payment mix, not just UPI. Model it with our payment gateway fee calculator before you commit.
  • The zero-MDR policy is under review. In March 2026 a Parliamentary committee proposed bringing back MDR for large commercial UPI merchants while keeping it free for small businesses and street vendors. Nothing has changed for small sellers yet, but it is worth watching if you process high volumes.

Collect flow vs Intent flow (and why it matters in 2026)

When you accept UPI online, the payment happens one of two ways:

  • Collect flow (pull): you request payment from the customer's UPI ID, and they approve it in their app. It works everywhere, including desktop and shared devices, but success rates are lower because of typing errors and notification delays.
  • Intent flow (push): the customer taps a UPI app, which opens pre-filled, and they just authorise. Intent delivers noticeably higher success rates - benchmarks of 92-95% versus collect - and most mobile users prefer it.

This is now more than a UX choice. NPCI guidelines effective February 2026 restrict manual VPA entry on mobile and push the industry toward Intent flow, so a good gateway should default to Intent on mobile. When you compare gateways, ask how they handle Intent.

How to set it up, step by step

  1. Pick a payment gateway. For most Indian websites this comes down to a few India-first options - see our guide to the best payment gateway for startups in India.
  2. Sign up and complete KYC. You will need business details and a bank account; UPI and basic methods are usually enabled quickly, though full activation can take a couple of days.
  3. Integrate. Use the gateway's plugin (for WordPress/WooCommerce, Shopify and similar) or its API/checkout SDK if you have a developer. UPI appears automatically as a method.
  4. Enable UPI and prefer Intent on mobile. Confirm both Collect and Intent are on, with Intent as the mobile default for higher success rates.
  5. Test, then go live. Run a small real transaction, confirm it settles to your bank account, and check the reconciliation in the dashboard.

Which gateway should you choose?

Short version: Razorpay is the default all-rounder for startups, Cashfree is strong on payouts and cross-border, and Instamojo is the fastest start for freelancers and small sellers who want payments plus a simple store. We compare them properly in the best payment gateway for startups in India guide, and you can browse every option in the Payments category.

UPI rules and gateway pricing change. Confirm current MDR, fees and flow support on the provider's own site before going live.

Frequently asked questions

How do I accept UPI payments on my website?
For a real website checkout, integrate a payment gateway (Razorpay, Cashfree, Instamojo, PayU and others) via a plugin or API - UPI then appears as a payment option alongside cards and net banking, with automatic settlement. For simpler needs you can use a UPI QR code or a no-code payment link instead.
Is there a charge (MDR) for accepting UPI payments in India?
Standard bank-to-bank UPI has zero MDR in India (no per-transaction merchant fee), in place since January 2020, and small merchants can earn a ~0.15% incentive on transactions up to Rs.2,000. However, your payment gateway may charge platform or setup fees, and cards/net banking through the same gateway do carry MDR, so model your full payment mix.
What is the difference between UPI Collect and Intent flow?
Collect flow asks the customer to approve a payment request in their UPI app and works everywhere including desktop. Intent flow opens the customer's UPI app pre-filled so they just authorise, giving higher success rates (around 92-95%). NPCI guidelines effective February 2026 push the industry toward Intent on mobile.
Do I need a payment gateway to accept UPI, or can I just use a QR code?
A QR code or UPI ID works for invoices and social selling, but it means customers leave your site and you reconcile manually. For a proper website checkout with automatic reconciliation and settlement, use a payment gateway that offers UPI alongside other methods.
paymentsupiindia

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