How To Integrate A UPI Payment Gateway Into Your Website Or Mobile App
8 min read
UPI has exponentially grown in India since it first launched, and it’s no surprise why. In fact, UPI transactions accounted for nearly 86% of India’s GDP in FY22! By June 2024, over 424 million unique users were using UPI, and there were nearly 14 billion monthly transactions.
But why has UPI become so dominant? For one, it’s incredibly easy to use. No need for physical cards or cash – users can make instant transfers right from their smartphones, while businesses can effortlessly accept payments. It’s also highly secure, which is why it’s become the go-to payment method for millions of people and businesses. By integrating a UPI Payment Gateway into your website or app, online business owners can tap into a huge customer base and give them a smooth, simplified payment experience making it a win-win all around!
But, what’s the best way to offer UPI as a payment method for your online business? UPI Payment Gateways!
What are they? Simply put, they’re payment systems that allow businesses to receive payments from a customer’s bank account using UPI as the payment method.
Ways to Integrate a UPI Payment Gateway Integration
You can integrate a UPI Payment Gateway into your online business through two types:
1. Merchant-Hosted Integration (Custom Checkout): In this integration, the entire payment process takes place within the merchant’s website or app. Customers enter their payment details directly on the merchant’s platform, ensuring a seamless and branded checkout experience. This method provides greater control over the user journey but requires additional security measures and compliance with payment regulations.
2. Payment Gateway-Hosted Integration (Standard Checkout): Here, the payment gateway manages the entire transaction flow. Customers are securely redirected to the gateway’s payment page to complete their purchase. This method simplifies integration, ensures compliance, and provides a quick and reliable way to accept UPI payments without handling sensitive payment data directly.
In both integration types, the UPI Payment Gateway can be implemented using three methods:
1. API Integration:
This is for businesses that want full control over the payment process. You integrate the payment gateway through APIs, allowing you to customize the payment flow and manage transactions directly from your backend. It’s perfect if you want more flexibility and control.
For example, an online store wants to accept UPI payments, so it integrates a UPI payment gateway using an API. This allows customers to pay directly from their bank accounts during checkout. The merchant can use the Collect Request API to send a UPI payment request, which customers can approve through their preferred UPI app.
Why is it useful? API integration offers complete control over the payment flow, allowing businesses to fully customize the checkout experience and ensure it aligns with their specific needs. It’s also a great option for businesses with unique payment flows or complex systems, providing a high level of flexibility.
Select a payment gateway provider that offers UPI integration. Make sure it supports API integration.
Step 2: Sign Up and Get API Keys
Create an account with the chosen payment gateway provider. Once logged in, navigate to the developer section of their platform to generate the API keys that will allow your website or app to communicate with the gateway securely.
Step 3: Integrate the API into Your Backend
Using the API documentation provided by the gateway, integrate the payment gateway into your backend system. This will involve setting up API calls for transaction creation, payment status checks, and handling responses.
Step 4: Create the Payment Flow
Set up the payment flow on your website or app. This includes:
A payment page where users select UPI.
Redirecting them to a UPI interface for authentication (or embedding it).
Handling the response after payment (successful or failed) and updating order status.
Step 5: Test the Integration
Before going live, conduct test transactions using the sandbox environment provided by the payment gateway to ensure everything works smoothly.
Step 6: Go Live
Once testing is complete, switch to the production environment and start processing live transactions.
2. Plugin/Partner Integration:
Businesses looking for a quick and hassle-free way to enable UPI payments can leverage plugin or partner integrations. These methods eliminate the need for extensive technical development while ensuring smooth payment processing.
For example:
An online store running on WooCommerce, OpenCart or Shopify, can install a UPI Payment Gateway plugin, configure it with a few clicks, and start accepting UPI payments effortlessly.
A SaaS platform like Rodeo already has a built-in UPI payment integration, allowing merchants to activate it without additional setup.
Why is it useful?
No need for extensive coding or API development.
Reduces integration effort and ensures a smooth transaction experience.
Works for both small merchants using plugins and businesses on SaaS platforms with built-in payment options.
How to integrate using this method
Step 1: Verify if your platform supports a payment gateway via a plugin or built-in partner integration.
Step 2: If using a plugin, install it from the platform’s marketplace. If using a partner integration, activate it from the platform’s settings.
Step 3: Enter API keys or credentials provided by the payment gateway and customize the payment settings to match your brand.
Step 4: Run test payments to ensure the payment flow works smoothly.
Step 5: Switch to the live environment and start accepting UPI payments.
Both plugin and partner integrations offer quick, efficient ways to integrate UPI payments, helping businesses focus on growth without worrying about complex technical setups.
3. SDK Integration:
SDKs are a great choice for apps. They provide a set of pre-built tools and server-side libraries (Java, Python, Node.js, PHP, etc.), reducing development effort while ensuring a secure and smooth payment experience. Mobile SDKs allow in-app payments without redirection, while backend SDKs simplify payment handling on the server side, enhancing security and scalability.
A food delivery app integrates the UPI payment gateway using an SDK. Customers can complete payments directly within the app, while the backend SDK handles secure transaction processing, ensuring a frictionless experience.
Why is it useful?
Speeds up development with pre-built libraries, reducing the need to code everything from scratch.
Ensures seamless UPI payments by handling payment flows within apps and backend systems.
Enhances security by managing encryption, tokenization, and compliance within the SDK.
Ideal for businesses that need a scalable, efficient, and customizable payment solution without fully building the integration from scratch.
How to integrate using this method
Step 1: Choose a UPI Payment Gateway with SDK Support – Select a provider like PhonePe PG that offers mobile and backend SDKs.
Step 2: Download the SDK – Get the SDK for your platform (iOS, Android, or backend language) from the provider’s developer portal.
Step 3: Configure the SDK- Integrate it into your app’s payment flow or backend system with merchant credentials and API keys.
Step 4: Implement Payment Processing – Set up UPI payment handling, including authentication, transaction verification, and callbacks.
Step 5: Test in Sandbox Mode – Run test transactions to validate payment success, failure handling, and security compliance.
Step 6: Go Live – Deploy with production keys and start processing real transactions.
Just like choosing the right type of integration for your business, picking the right UPI payment gateway is equally important.
How to Choose the Right UPI Payment Gateway for Your Business?
For starters, picking the right UPI Payment Gateway for your website or app isn’t just a technical decision; it’s something that can make or break your customer experience, transaction success rates, and overall business efficiency. It’s crucial that the gateway aligns with your business needs, how your customers prefer to pay, and what your website can handle.
So, what should you look for when choosing a UPI payment gateway for your business? Here are a few things to keep in mind:
1. Integration Flexibility
The gateway should offer easy integration with your existing platform (e.g., website, mobile app). Look for a solution that provides well-documented APIs, SDKs, and plugins, allowing you to integrate UPI seamlessly without extensive technical expertise.
2. Transaction Speed
UPI payment gateways should provide instant transaction processing, ensuring that payments are confirmed in real-time. This reduces the risk of cart abandonment and improves user experience.
3. Security Protocols
Security is critical for both your business and your customers. Make sure the payment gateway supports encryption (SSL/TLS), PCI-DSS compliance, and 2FA (Two-Factor Authentication) to ensure secure transactions and protection from fraud.
4. Scalability and Load Handling
As your business grows, your payment gateway should be able to handle an increasing volume of transactions without compromising performance. A scalable solution ensures you can manage peak loads during high-traffic times (e.g., sales events, holiday seasons).
5. Settlement and Payout Flexibility
The gateway should offer efficient settlement times (e.g.,T+1 settlements). Fast settlements ensure your business has better cash flow management and minimizes the time between transaction completion and funds availability.
6. Support for Recurring Payments
If your business operates on a subscription model, ensure that the payment gateway supports recurring payments, which are crucial for smooth billing cycles.
A good UPI payment gateway will provide real-time analytics, transaction reports, and insights that help you track payments, identify trends, and optimize your business operations.
8. Customer Support and Documentation
Technical support is essential in case you run into issues with the integration or encounter payment processing problems. A strong customer support team can minimize downtime and help resolve technical issues quickly.
UPI payment gateways can really make a difference in how your customers experience your business, offering them a secure and smooth way to complete transactions. Whether you’re running an e-commerce store, a service-based business, or anything in between, integrating UPI is crucial to staying ahead in today’s digital world.
At PhonePe PG, we understand what your online business needs, which is why we are a trusted payment gateway provider. PhonePe is one of the key players in the UPI payment space, with millions of users and strong partnerships with banks and merchants, making it a reliable platform for digital payments.
What sets PhonePe PG UPI Payment Gateway apart is that it’s built on PhonePe’s own tech stack. This provides reliability and the capability to handle high transaction volumes efficiently.
