Six advantages of UPI for small businesses
29 March, 2024
Six advantages of UPI for small businesses
The Unified Payments Interface (UPI) has revolutionized India’s digital payment landscape. Thanks to its convenience and wide acceptability, UPI transactions have increased significantly over the past few years. UPI benefits are not only restricted to individuals but also small business enterprises. As a small business enterprise owner, here are some of the key advantages of UPI you can avail of:
Benefits of UPI for business
1. Low-cost option
UPI is a low-cost option for small businesses. You don’t need to pay any transaction fees while accepting UPI payments. UPI is a more cost-effective option, unlike the conventional card-based payment option, where you are likely to incur certain charges. This translates into increased savings in the long run.
2. Easy and quick
One of the significant benefits of UPI payment is that it’s easy and quick. You don’t need to provide customers with bank account details, IFSC code, and other personal information for receiving payments. You only need the UPI ID or a QR code to receive payments. Additionally, you can also make payments to your vendors seamlessly through UPI.
Furthermore, UPI ensures faster access to funds. You can use the available funds for various operational needs. This helps you grow your business and boost revenues in the long run.
3. Helps you widen your customer base
UPI helps you widen your customer base. If your business has only one or two payment options, it could restrict your customers. Note that today, a significant chunk of the population uses UPI for payments. By implementing UPI in business operations, you can connect with various customers.
Also, as UPI is a bank-neural technology, it helps you accept payments from diverse customers. This is especially helpful if you have just started operations and have a small clientele.
4. Speedy and secure transactions
The speed and security of transactions are among the major advantages of UPI. With it, you can provide your customers with a secure and real-time payment environment. Features like two-factor authentication and encryption guard against fraud and illegal transactions. This gives you peace of mind and allows you to focus on key business activities.
5. Real-time monitoring
One of the standout features of UPI is its ability to monitor transactions in real-time. As a small business owner, you can easily track payments and expenses, facilitating better financial management and informed decision-making. With UPI, you can maintain a clear and up-to-date financial overview, enabling you to identify patterns and analyze trends, thus helping you to optimize your financial performance.
At the same time, real-time monitoring enables you to identify discrepancies, if any. Be it a payment delay or an unexpected expense, you can address problems proactively and take the necessary steps.
6. Simplified tax compliance
This is one of the several UPI benefits. UPI transactions leave a digital trail. This helps in simplifying documentation for tax compliance. You can easily view your transaction history and generate reports. This eases the burden of tax compliance. It also reduces the burden of financial record-keeping.
Summing it up
As evident, there are several benefits of UPI for business. With UPI bringing out new features regularly, such as Tap and Pay, lite X, etc., you can leverage them to remain competitive and adapt to changing consumer preferences. With HDFC Bank’s UPI payment service, you can enjoy instant funds transfer through partner apps, including Google Pay, Mobikwik, and PayZapp, among others.
*Terms and conditions apply. The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances.
