Payment gateway in India: how to accept UPI and IMPS payments on your website

India has one of the most advanced real-time payment systems in the world. Most online buyers no longer type card numbers: they pay with UPI, the Unified Payments Interface, by scanning a QR code or tapping a button that opens their payment app. In 2025 UPI processed more than 20 billion transactions a month, from street food to electricity bills and online shopping.

If your website sells to Indian customers and only accepts cards or international wallets, you lose a large share of buyers at checkout. This guide explains how Indians pay online, how a payment gateway handles UPI and IMPS from QR code to webhook, which rules and risks matter, and how to choose a provider.

How Indian buyers pay online

UPI is run by the National Payments Corporation of India (NPCI). Every customer has a UPI ID (a "VPA" such as name@bank) linked to a bank account. A payment moves money directly from the customer's bank account to the merchant's side in a few seconds, at any hour, including weekends and public holidays.

IMPS (Immediate Payment Service), also run by NPCI, is the older instant bank-transfer rail. Today it is used mostly for bank-to-bank transfers and payouts, while UPI dominates customer payments at checkout.

Why UPI won

1. No card needed. Anyone with a bank account and a smartphone can pay.
2. Very fast. A payment is usually confirmed in seconds.
3. One standard, many apps. A single QR code works with every UPI app and every bank.
4. Low cost for customers. Paying by UPI is free for the payer.

For merchants this means: UPI is the default payment method in India, and cards are a second option.

QR, intent and collect: which flow to use

There are three ways a website can start a UPI payment:

• QR code (scan and pay). Best on desktop. The gateway creates a dynamic QR that contains the exact amount and a unique reference for the order. The customer scans it with their phone.
• Intent (app switch). Best on mobile. The checkout opens the customer's UPI app directly, with the amount pre-filled. The customer only enters their PIN.
• Collect request. The merchant sends a payment request to the customer's UPI ID, and the customer approves it in their app. NPCI has been phasing out collect requests because of fraud, so QR and intent are the safe default for new integrations.

A good checkout shows a QR on desktop and an intent button on mobile, and lets the customer switch if one does not work.

How a payment gateway handles UPI, step by step

The most important detail is the unique reference per order. When the money arrives, the gateway knows exactly which order it belongs to. No one has to compare bank statements by hand.

Rules you should know

India regulates digital payments closely. A few points matter for any merchant:

Payment aggregators need RBI authorisation. Companies that collect money on behalf of merchants must be authorised by the Reserve Bank of India (RBI) under its payment aggregator rules, which also cover cross-border aggregators. Work with a provider that collects through an authorised partner.

KYC for merchants. Expect to provide company documents, a description of your business and your website before going live. This is normal and protects both sides.

Real-money online gaming is banned. The Promotion and Regulation of Online Gaming Act, 2025 prohibits online money games and payments for them in India. Free-to-play games, e-sports and social games are treated differently. If your business involves games, check carefully which category it falls into before you accept payments from India.

Data and refunds. Keep clear records of each payment and refund. Customers can raise disputes through their UPI app or bank, and the merchant must be able to show what was paid and delivered.

This is general information, not legal advice. Rules change; check the current RBI and NPCI guidance or ask a local adviser.

Risks and how to handle them

Fake payment screenshots. Some buyers send an edited screenshot of a "successful" UPI payment. Never deliver on a screenshot. Deliver only when the gateway's webhook confirms the payment.

Pending payments. Sometimes a bank takes longer to confirm, and the customer sees "pending". Do not create a second order. Wait for the final status from the webhook or check the status API.

Payment confirmed, but the order was not updated. If your server was down when the webhook arrived, the order may stay unpaid even though the customer paid. Choose a gateway that retries webhooks and offers a status API, and process webhooks idempotently so an order is never credited twice.

Expired QR codes. A customer reopens an old QR after it expired. Create a new charge instead of reusing the old code.

Wrong amount. With a static QR the customer types the amount and may get it wrong. A dynamic QR with a fixed amount removes this problem.

Who benefits most from UPI

• Digital goods and software: sell licences, courses, templates and subscriptions; deliver right after the webhook.
• Games and top-ups (non-money): in-game items, credits for free-to-play games and gift cards — confirmed in seconds.
• Trading and investment tools: subscriptions to signals, tools and research platforms, with a clear record of every deposit.
• Marketplaces and e-commerce: fewer abandoned carts because customers pay with the app they already use.

Checklist for choosing a payment gateway in India

1. UPI QR and intent, with a dynamic QR and a unique reference for every order.
2. IMPS for bank transfers and payouts.
3. An authorised collection partner under RBI rules.
4. Signed webhooks with retries, plus a status API to check any payment.
5. A sandbox to test paid, pending, failed and expired payments.
6. Clear pricing, with no charge for failed payments.
7. Settlement that suits you: to an Indian account, a foreign account or stablecoins.
8. Reports with gross, fee and net for every payment, exportable for your accountant.
9. One API for several countries, if India is one of several markets.

Step-by-step integration

1. Create a merchant account and add your website.
2. Create a sandbox API key and keep it only on your server.
3. Set your webhook URL and store the webhook secret safely.
4. At checkout, create a charge by API with the amount in INR and your own order reference.
5. Show the UPI QR on desktop and an intent button on mobile.
6. Verify every webhook's signature, and mark each order paid only once.
7. Test paid, pending, failed and expired payments in the sandbox, then switch to a live key.

How PAYWISE handles India

PAYWISE is an API-first payment platform. Indonesia (QRIS) and crypto payments are live today, and India (UPI, IMPS) opens on request: merchants who ask first are prepared first. When India opens for your account, you use the same API, the same signed webhooks and the same dashboard as in every other PAYWISE market, so adding India does not mean a new integration.

See the India page and send a request in two minutes.

Frequently asked questions

Is UPI the same as a bank transfer? UPI moves money between bank accounts, like a transfer, but the customer does not need the account number or IFSC code. They scan a QR or open their app, and the amount is filled in for them.

How fast is a UPI payment? Usually a few seconds, at any time of day, including weekends and holidays.

Can a customer reverse a UPI payment? Not like a card chargeback. A customer can raise a dispute through their app or bank, and refunds are made by the merchant. Clear payment records make disputes easy to resolve.

Should I still accept cards in India? Yes, as a second option. Some customers prefer cards or want EMI instalments, but UPI should be the first choice at checkout.

Can a foreign company accept UPI payments? Yes, through a provider that collects locally through an authorised partner and settles to you. Ask how funds are settled and converted, and which business types are accepted.

Can I accept payments for real-money games from India? No. Since the Online Gaming Act, 2025, online money games and payments for them are prohibited in India.

Sources: NPCI — UPI, NPCI — IMPS, Reserve Bank of India. This article is general information, not legal or financial advice.