BHIM UPI payments for businesses: A comprehensive guide

1 April, 2024

In the rapidly evolving digital landscape of India, the Unified Payments Interface (UPI) has emerged as a game-changer. It benefits not just individuals but also small and medium-sized enterprises (SMEs) and large corporates. The seamless and effective payment mechanism of UPI has fundamentally changed cashless transactional processes, positioning it as a vital tool for businesses to succeed in today’s digital era.

This article discusses the significance of UPI for businesses with a special focus on BHIM UPI. Keep reading.

What is UPI? 

As mentioned, UPI stands for United Payments Interface. It allows instant funds transfer between two parties through a dedicated smartphone app. Customers can download a UPI app on their smartphones and link it with their bank accounts to create unique UPI IDs. They can then scan a UPI QR code or enter the UPI ID of another user to send payment at any time and from anywhere.

As a business owner, you can integrate UPI to request and receive payments from your customers in a hassle-free manner.

What is BHIM UPI? 

Several UPI platforms and smartphone apps are available in India to facilitate seamless and instant transfer of funds from one bank account to another. BHIM UPI is one such platform developed by the National Payments Corporation of India (NPCI) to promote digital transactions in the country. BHIM stands for Bharat Interface for Money (BHIM).

The BHIM UPI app can perform all UPI-related transactions, such as making payments, receiving payments, bill payments, etc.

Benefits of BHIM UPI for Businesses 

• Simplified transactions 
  
  BHIM UPI for businesses allows them to receive payments directly into their bank accounts without the need for traditional Point-of-Sale (POS) machines or cumbersome bank transfers. It simplifies the payment process by reducing manual interventions and potential errors.
  
  

• Instant settlements 
  
  One of the most significant advantages of BHIM for businesses is the real-time settlement feature. Unlike RTGS or NEFT, you can receive payments in your bank accounts instantly. Subsequently, it enhances your cash flow and liquidity.
  
  

• Better customer experience 
  
  With the growing adoption of digital payments, businesses that offer UPI as a payment method are likely to attract a broader customer base. By integrating BHIM UPI, businesses can significantly enhance their customer experience by offering them a quick, convenient, and secure payment option.
  
  

• Cost-effective 
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  UPI for business typically comes with zero or minimal transactional fees. It means you won’t have to pay anything extra to offer added convenience to your customers.
  
  

How to integrate BHIM UPI into your business?

You can easily integrate BHIM UPI into your business to receive payments in your Current Account. The process for the same is as follows:

• Download the BHIM UPI app on your smartphone

• Enter your registered mobile number and choose the bank with which you have a Current Account

• Link your Current Account with the BHIM UPI app

• Set up your BHIM UPI PIN

Once the process is complete, you can use BHIM UPI to request and accept payments from your customers. You can do so through your personalized UPI QR code or UPI ID.

To conclude 

BHIM UPI payments for businesses entail multiple benefits. It can help you enhance operational efficiency, improve customer experience, and stay ahead of your competitors. If you have a Current Account with HDFC Bank, you can integrate BHIM UPI into your business operations and open a world of opportunities

*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.