How to Accept UPI Payments Using a PoS Machine?

Unified Payments Interface (UPI) has surfaced as a revolutionary system in India, enabling seamless, instant money transfers between bank accounts through mobile devices. As businesses aspire to keep up with this digital transformation, integrating UPI payments with Point of Sale (PoS) machines has become crucial.

This integration not only streamlines transactions but also enhances the customer experience by offering a secure and efficient payment option. This article will guide you through the process of accepting UPI payments using a PoS machine, underlining the benefits and providing step-by-step instructions for businesses.

Understanding UPI and its benefits

The UPI acts as an umbrella platform, unifying various bank accounts under a single mobile application. This eliminates the need for complex bank account details or card swipes. Customers can initiate payments using a Virtual Payment Address (VPA), a unique identifier similar to an email address. Transactions are facilitated through a robust two-factor authentication process, ensuring security.

Benefits of accepting UPI payments with a PoS machine

• Enhanced customer convenience: Customers with UPI-enabled apps can make instant payments by simply scanning a QR code displayed on the PoS machine. This eliminates the need for cash or cards, speeds up checkout times and improves customer experience
• Increased sales: By offering UPI payment options, you offer to a wider customer base, particularly the growing segment of mobile-first users who prefer cashless transactions
• Reduced operational costs: UPI transactions eliminate the need for cash management and associated security risks. Additionally, processing fees for UPI payments are typically lower compared to credit card transactions
• Real-time settlements: Funds are transferred directly to your bank account in real-time, eliminating delays and improving cash flow management
• Improved transparency: Both you and the customer receive instant confirmation of successful UPI transactions, reducing the risk of errors and disputes

How to accept UPI payments using a PoS machine

The process of accepting UPI payments with a PoS machine is straightforward and user-friendly. Here's a step-by-step guide:

1. Ensure UPI integration: Verify that your PoS machine provider offers UPI integration. PoS providers like Pine Labs support UPI payments
2. Activate UPI on your PoS: Contact your PoS provider for assistance in activating UPI functionality on your machine. This may involve software updates or configuration changes
3. Making a UPI payment: During checkout, when a customer chooses UPI as the payment method:
   • Enter the transaction amount:  Enter the total bill amount in your PoS machine,.
   • Generate QR code: Select the option that generates QR code. The PoS machine will display a unique QR code on the screen
   • Customer scans the QR code: The customer uses the UPI app on their smartphone to scan the QR code displayed on the PoS machine
   • Payment confirmation: The customer's UPI app will pre-fill the transaction details, including the merchant's name and amount. They will then be prompted to enter their UPI PIN for authorisation
4. Transaction completion: Upon successful PIN verification, the UPI app displays a confirmation message for the customer. The PoS machine will also receive a notification confirming the successful transaction
5. Provide a receipt: You can also print a receipt for the customer's records using the print function on your PoS machine

Additional Tips for Accepting UPI Payments

• Train your staff: Ensure that staff is familiar with the process of accepting UPI payments on the PoS machine. This includes understanding how to generate QR codes, troubleshoot any issues, and answer customer queries
• Maintain a stable internet connection: A consistent internet connection is essential for smooth UPI transactions. Ensure a strong internet connection at your store to avoid disruptions
• Promote UPI payments: Educate your customers about the benefits of using UPI for in-store purchases. Display signage or promote UPI as a payment option at your checkout counter

Looking for a seamless UPI payment solution?

By incorporating UPI payments into your PoS system, you equip your business to cater to the growing demand for cashless transactions. UPI offers a win-win situation for both businesses and customers, streamlining transactions, reducing costs, and enhancing the overall payment experience.

At Pine Labs, we understand the importance of offering your customers a variety of convenient payment options. Our PoS machines, Touch, Go, and the newly launched VoicePod and VoicePod Pro seamlessly integrate UPI payments, allowing your customers to pay instantly using their preferred UPI app.