Unlike card payment systems, which require expensive swiping machines and charge fees, UPI offers a cost-free solution. Merchants can generate and display QR codes without any investment in additional hardware. With zero Merchant Discount Rate (MDR) on UPI transactions, merchants can accept payments without incurring extra charges. This encourages shopkeepers and small business owners to transition to digital payments. The saved money can be reinvested in their businesses.
Small merchants also benefit from UPI’s quick and direct settlement process. Payments go straight into their bank accounts, eliminating delays and improving cash flow. This is especially important for businesses that rely on daily revenue for operations. The simplicity of the UPI system means merchants don’t need technical expertise or training to use it. Apps are available in regional languages, ensuring inclusivity for those with limited formal education.
