UPI vs Payment Gateways: Why QR Codes are Free and Instant
Compare UPI QR codes with payment gateways. Learn why UPI has zero transaction fees, instant settlement, and is the best choice for Indian merchants.
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Payment gateways charge 1.5% to 3% per transaction. UPI charges nothing. Here's why UPI QR codes are the smarter choice for Indian businesses.
UPI vs Payment Gateways
| Feature | UPI QR Code | Payment Gateway | |---------|-------------|-----------------| | Transaction fee | 0% | 1.5% - 3% | | Settlement | Instant | T+1 to T+7 days | | Setup | Free, no signup | KYC, integration | | Monthly charges | None | Often yes | | Works offline | Yes (print QR) | No |
Why UPI is free
UPI is built by NPCI (National Payments Corporation of India) and supported by the Reserve Bank of India. It's designed to promote digital payments—so transaction fees are waived for merchants.
When to use each
Use UPI QR codes for:
- In-store payments
- Invoices and bills
- Freelance payments
- Small transactions
- Zero-fee requirement
Use payment gateways for:
- International cards
- Recurring subscriptions
- E-commerce with card checkout
For most Indian businesses, UPI QR codes cover 80% of payment needs at zero cost.
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