In the past few years, India has witnessed a revolutionary shift in its payment landscape. Thanks to the Unified Payments Interface (UPI), even the smallest kirana stores and street vendors can now accept digital payments quickly, safely, and with zero setup cost.
If you’re a small business owner—whether you run a grocery shop, tuition center, cafe, or boutique—choosing the right UPI app can make a big difference in your daily transactions, customer satisfaction, and cash flow management.
This guide explores the top UPI apps in India for small business owners in 2025, their features, pros and cons, and how to choose the right one for your needs.
🔄 Why Small Businesses in India Need a Good UPI App
Here’s why UPI is a must-have for every small business today:
- Zero MDR (Merchant Discount Rate) on P2P transactions
- Instant payment confirmation
- Safe and secured with RBI and NPCI regulations
- Makes record-keeping easier for GST and tax filing
- Customers increasingly prefer contactless payments
But not all UPI apps are made equal. Let’s look at the top contenders
📱 Top UPI Apps for Small Business Owners in India (2025)
| UPI App | Best For | Key Features | Charges | Platform |
| PhonePe Business | Overall best for retail and grocery stores | QR code payments, settlements, transaction history, support for tips | ₹0 MDR on UPI; Settlement charges beyond limit | Android, iOS |
| Paytm for Business | Best for diverse payments (UPI, wallet, cards) | All-in-one POS, instant bank settlement, Paytm Soundbox | ₹0–₹12/day for Soundbox; no UPI charge | Android, iOS |
| Google Pay for Business | Best for service providers and freelancers | Seamless GPay UPI integration, payment links, auto-settlement | Free for UPI; No soundbox option | Android |
| BharatPe | Best for cashless, soundbox, and loans | QR-based UPI + Loan offers + PayLater | Soundbox rental ₹50–₹100/month | Android, iOS |
| CredPay | Best for high-value services | Accepts UPI from CRED users, supports premium clientele | No MDR | Android, iOS |
| Amazon Pay for Merchants | Good for online sellers & freelancers | Easy integration with Amazon & UPI | ₹0 UPI fee; low transaction charge on cards | Android, iOS |
| BHIM App (NPCI) | Government-backed option | Pure UPI interface, minimal design, no ads | Free UPI, no added features | Android, iOS |
📌 1. PhonePe for Business
🔹 Why It’s Good:
- Free onboarding and QR code setup.
- Supports daily auto-settlements to bank accounts.
- Offers soundbox integration (optional).
- View daily reports, tips collected, refunds.
🔹 Best For:
Kirana shops, tea stalls, vegetable vendors, clinics.
📌 2. Paytm for Business
🔹 Why It’s Good:
- Accepts UPI, wallet, net banking, and card payments.
- Paytm Soundbox announces payment—great for busy shops.
- Instant and auto bank settlements.
- Generate GST reports and payment links.
🔹 Best For:
Retailers, restaurant owners, service professionals, beauty parlours.
📌 3. Google Pay for Business
🔹 Why It’s Good:
- Zero setup cost, smooth integration with Google ecosystem.
- Payment links for clients (perfect for freelancers).
- Real-time notifications.
- Simple UI for quick scanning and record-checking.
🔹 Best For:
Tutors, photographers, freelancers, consultants.
📌 4. BharatPe
🔹 Why It’s Good:
- Multi-bank QR that accepts all UPI apps.
- Affordable soundbox options (in regional languages).
- Option to avail business loans, overdrafts.
- No setup fee, and free settlement within limits.
🔹 Best For:
Pan shops, dhabas, local stores looking for loans and easy digital transition.
📌 5. CredPay
🔹 Why It’s Good:
- Perfect for premium service businesses.
- Accept UPI payments from CRED users (HNI clientele).
- One-click payment link sharing.
- Real-time notifications and secure gateway.
🔹 Best For:
Luxury salons, boutique services, online consultants, interior designers.
📌 6. Amazon Pay for Merchants
🔹 Why It’s Good:
- Easy acceptance of Amazon Pay + UPI.
- Trusted by Amazon shoppers.
- Payment links and QR code options.
- Smooth interface and fast settlements.
🔹 Best For:
Small e-commerce sellers, freelancers, resellers.
📌 7. BHIM UPI
🔹 Why It’s Good:
- Developed by NPCI, no frills, ad-free.
- Excellent for users who want basic UPI functionality.
- Accept payments using just your UPI ID/QR.
- Supports multiple bank accounts.
🔹 Best For:
Older business owners, low-tech environments, basic usage.
✅ Factors to Consider When Choosing a UPI App for Your Business
| Factor | Why It Matters |
| Ease of Use | Quick navigation saves time and helps train staff easily |
| Transaction Charges | Most UPI is free, but beware of hidden settlement charges |
| Settlement Time | Instant or scheduled transfer to your bank account |
| Soundbox Option | Real-time voice confirmation, especially useful in noisy markets |
| Customer Trust | Apps like Paytm, GPay, PhonePe build instant trust |
| Reports and Analytics | Monthly reports help with accounting and taxes |
| Extra Features | Loan eligibility, cashback, GST filing help, EMI options |
💡 Pro Tips for Small Business Owners
- Use multiple UPI QR options (Paytm + PhonePe + BharatPe) to ensure all customer apps are supported.
- Keep your bank account active and KYC-compliant to avoid failed settlements.
- Use soundbox if you’re too busy to check every transaction.
- Track monthly sales through app reports—it helps at tax time.
- Encourage customers to use UPI over cash for seamless accounting.
🧾 Are There Any Tax Rules for UPI Transactions?
Yes. Even though UPI is a mode of payment, all business income—whether via UPI, card, or cash—must be declared in ITR. GST-registered businesses must maintain proper records of UPI payments too.
Note: Apps like Paytm and BharatPe now offer GST-compatible reports.
📌 Conclusion
Digital payment adoption in India is no longer optional—it’s essential. For small business owners, UPI apps not only simplify collections but also provide tools for growth like loans, analytics, and seamless customer experience.
Best pick?
- Use PhonePe or Paytm if you run a retail or physical store.
- Go for Google Pay or CredPay if you’re in services or freelancing.
- Choose BharatPe if you want a soundbox + loan access combo.
In 2025, your smartphone can be your POS machine, accountant, and bank—all in one. Choose your UPI app wisely and stay one step ahead!
