UPI
Also called: Unified Payments Interface
What is UPI?
UPI, the Unified Payments Interface, moves money instantly between bank accounts through a mobile app, using a virtual payment address instead of account numbers. For merchants it settles directly to the bank account, usually within seconds.
Why UPI matters
UPI removed the two things that kept small businesses on cash: change management and card machine costs. For most counters it is now the default payment mode rather than an alternative.
How UPI works in practice
Accept it through a QR code at the counter — static for fixed displays, dynamic for per-bill amounts. Reconcile UPI credits against bills daily, because a customer's failed payment and a successful one look identical to a busy cashier.
Frequently asked questions
Person-to-merchant UPI transactions have not carried merchant discount charges the way cards do, which is a large part of its adoption.