How UPI QR Codes Are Transforming Payments for Merchants

By: RegieUpdate: April 14, 2025

UPI QR code payments are everywhere: at your favorite coffee shop, street stalls selling snacks, and even high-end retail stores. No more fumbling for cash or waiting for OTPs; just scan, pay, and you’re done.

But for merchants, this isn’t just about convenience; it’s a major breakthrough in sales, security, and customer experience.

The problem? Many businesses remain dealing with slow transactions, payment failures, and the never-ending headache of handling cash. In our fast-paced world, these delays cost time and, more importantly, customers.

QR codes solve this effortlessly, allowing businesses to accept instant payments without extra hardware or complicated setups. Whether you’re a small business owner or an enterprise, a simple QR code can speed up transactions and improve cash flow.

Table of Contents

What is a UPI-based QR code payment?

A UPI QR code is a machine-readable 2D barcode that lets customers pay merchants through the Unified Payments Interface (UPI) system. It’s linked to a UPI ID, a unique identifier tied to a user’s bank account.

UPI is a real-time payment system developed by the National Payments Corporation of India (NPCI) and regulated by the Reserve Bank of India (RBI).

Through NPCI's free QR code generator UPI infrastructure, people can instantly send and receive money between banks using their mobile devices.

Using this QR code makes digital payments quick and easy. Instead of typing long account details, you scan the code, enter the amount, and pay—simple as that.

Some payment systems also provide a bank account QR code, allowing users to link their accounts directly for seamless transactions without needing a separate UPI ID.

This payment method is widely used across India. There are 350 million users of QR codes for UPI, and 500 million merchants accept payments through it. And the numbers are still growing.

According to the Finance Ministry, in January 2025 alone, UPI transactions hit 16.99 billion, with a total value of 23.48 trillion rupees, the highest ever recorded in a month. The payment system has become a huge part of daily life in India, handling 80% of all retail payments.

How to get a UPI QR code?

Getting a QR code for UPI payment is quick and simple. You can generate one in multiple ways. Here’s how:

Method 1: NPCI’s BHIM app

Install the app, open it, and log in using the registered mobile number linked to your bank account.
On the home screen, look for the “QR code” option. Tap on it to proceed.
Choose whether you want a personal UPI or one for business payments.
Enter the necessary details, such as UPI ID and payment preferences.
Once generated, download or screenshot your QR code.

Merchants looking to streamline transactions can also use a QR code for businesses to accept digital payments securely. A branded QR code improves customer trust and makes transactions smoother.

Method 2: UPI payment app

Apps like Google Pay, PhonePe, and Paytm allow you to create a QR code easily. Here’s how:

Google Pay

Open the app and tap on your profile icon.
Select the QR Code to view your existing UPI QR or create a new one.
Download or share the QR code for payments.

PhonePe

Launch the app and tap the Receive button.
A QR code will be displayed for your UPI ID.
Share the QR code or save it for future use.

Paytm

Open the app and click the Accept Payment or QR Code section.
Generate a new QR code for your account.
Download or print the QR code to share.

Method 3: Use a reliable payment QR code generator that supports UPI

Generate a UPI payment link

Choose a Payment Gateway or UPI service (Razorpay), sign up, or log in.
Access the dashboard and find the Payment Links option to create a new payment link.
Select the UPI Payment Link and enter the payment details.
Click Create Payment Link.
Copy the generated UPI payment link.

Create a QR code for the UPI payment link

Visit a QR code maker online.
Select the URL QR code solution.
Paste the UPI payment link into the field.
Choose whether you want a static or dynamic QR code.
Click Generate QR code.
Customize the QR code to fit your preferences.
Download and share the QR code for payments.

Pro Tip: Use a dynamic URL QR code to track scans, update links, and customize your design.

Benefits of UPI payment QR code for business transactions

A UPI payment QR code makes life easier for businesses and individuals. Here’s why many people prefer it:

Quick and easy transactions

UPI-based QR codes have made payments easier, faster, and cheaper for merchants. Instead of handling cash or swiping a card, customers can simply scan a QR code and pay in seconds using their phone.

There is no need to type long account numbers or IFSC codes or wait for one-time password notifications.

Secure payments

Digital payments keep transactions safe. There is no risk of theft, no misplaced cash, and no need to count money at the end of the day.

Every transaction is protected with multi-layer security, including PIN verification and bank encryption, making UPI one of the safest payment methods.

A QR code generator for banks ensures that financial institutions can generate secure and customized QR codes, enhancing both the safety and customer experience in digital payments.

Everything is also automatically recorded, making bookkeeping and tax filing simpler.

No extra charges

Unlike some digital payment options, UPI transactions are free for users and have low or no charges for merchants, making them a budget-friendly option for small business owners.

For shop owners, street vendors, and big retailers alike, using QR-based payments means they no longer need to invest in credit card readers and terminals.

A printed QR code is enough to accept payments, making it easy for even the smallest businesses to go cashless.

This accessibility has led many businesses to integrate UPI to QR code systems into their daily operations, allowing customers to complete transactions with just a scan.

No need for cash

There are no long waits, no need to give change, and no worries about counterfeit money.

With a QR code, you don’t have to carry cash, worry about making an exact change, or hand over their cards and touch keypads. This is perfect for small—and medium-scale businesses and customers in a rush.

Works 24/7

Need to send money late at night or on a holiday? No problem at all. UPI payments work anytime, anywhere, without waiting for bank hours.

Security and fraud prevention tips when using QR-based payments

Using a UPI-based QR code for payment is convenient but comes with security risks. Here are some essential tips to protect yourself from fraud and ensure safe transactions:

Generate QR codes from trusted sources

Create your QR code from your official bank or payment provider, and avoid third-party or unverified payment QR code generators.

Monitor your transactions regularly

Check your bank statements and UPI transaction history regularly, and enable SMS or email alerts for instant updates on any unauthorized activity.

Verify the receiver before payment

Always double-check the name and details before sending money, especially if the receiver insists on scanning a QR code instead of entering the UPI ID manually.

Fraudsters may also use a random UPI ID to trick users into sending money to the wrong account, so it's best to confirm the recipient’s details before proceeding.

Use a verified and secure UPI app

Always use official banking apps and trusted payment apps like Google Pay, PhonePe, or Paytm, and keep them updated for the latest security patches.

Beware of fake QR codes

Fraudsters can create fake QR codes to redirect payments to their accounts, so always verify the source before scanning. Check for suspicious edits, overlays, or alterations on printed QR codes to avoid scams.

Never scan QR codes to receive money

QR codes are for making payments, NOT receiving money. If someone asks you to scan one to "accept" a refund, prize, or deal that seems too good to be true, it’s a scam.

Secure your UPI PIN and credentials

Never share your UPI PIN with anyone—banks or payment providers will never ask for your personal identification number or one-time passwords over calls or messages.

Report fraud immediately

If you suspect fraud, report it immediately to your bank or payment provider. You can also contact NPCI’s UPI helpline at 1800-120-1740 to file a complaint.

Step into the future of digital payments with QR codes

A UPI QR code is an essential business tool that streamlines transactions and enhances customer convenience.

Whether you're running a retail store, restaurant, or online service, integrating QR-based payments can improve efficiency and reduce operational hassles.

As more are leaning toward digital transactions, using UPI-based QR code payments is not just an option but a necessity for businesses looking to thrive.

And if you're searching for the best QR code generator to get started, make sure to choose a trusted and reliable platform that meets your business needs.

FAQ

What are UPI codes?

A UPI code, short for Unified Payments Interface code, simplifies digital payments by enabling users to transfer and receive funds directly from their bank accounts.

With a quick scan of a UPI QR code, individuals can complete transactions seamlessly. These codes are widely used for bill payments, money transfers, and online shopping.

Are UPI and QR codes the same?

No, they are different. UPI is a unified payment system, while QR codes are machine-readable codes that store information. Although UPI uses QR codes to enable payments, they serve distinct functions.

How to create a UPI code?

You can generate a UPI-based QR code using online tools like QR code software that supports its creation. Enter your UPI ID, add any necessary payment details, choose a color, and generate your QR code.