CATEGORY - UPI

What is UPI QR code and How it Works

UPI - 25 Feb, 2025

Table of Contents

Understanding UPI and Its Impact

The Unified Payments Interface (UPI) by the National Payments Corporation of India (NPCI) has significantly boosted digital transactions in India. This real-time payment system has simplified business and payment transactions, enabling a mere QR code to attract customers and serve as a payment mode.

Be it a street vendor or any small or medium-sized retail shop, everyone can generate their free UPI QR codes. Also, it makes it easier for businesses themselves to track their daily sales since everything is recorded in the bank statement itself.

What makes UPI QR codes even more convenient is the fact that multiple bank accounts can be linked to a single mobile app, making it easier and quicker to transfer money – scan and pay! No need to look for cash or cards. Transactions have become faster, more convenient and truly hassle-free with UPI QR codes, thereby contributing to India’s digital economy.

How UPI QR Codes Work?

Every merchant gets their own UPI QR code. Inside this code, the merchant’s UPI ID or VPA is included. Payment apps like Phonepe, Google Pay, or Paytm can scan this code and read out most of the payment details. The user needs to enter the amount. After that, he needs to enter his pin and be done! Since this process is simple, there aren’t many chances that a user could make any mistake, leading to better usability for them.

What is a UPI QR Code?

A UPI QR code allows users to pay through the Unified Payments Interface in India. Like all QR codes, it is a 2D barcode, but it stores the merchant’s UPI ID, which, when scanned, allows the merchant to initiate a payment transaction. Every UPI ID is associated with the user’s bank account, making QR codes easy identifiers for sending money to the right person.

How Does a UPI QR Code Work?

QR Code Generation: The recipient (merchant or individual) generates a UPI QR code through a UPI app or payment gateway. The QR code contains their Virtual Payment Address, which may include an optional fixed payment amount.
QR Code Scanning: The payer opens their UPI app, which can be Easebuzz for Business, PhonePe, Google Pay, or Paytm, and scans the QR code presented by the recipient.
Transaction Details: The UPI-based application or bank application scans the QR code and displays the recipient’s information and the amount to be sent in case it has been available preset.
Payment Authorization: The payer checks the transaction details and enters their UPI PIN to approve this payment.
Instant Confirmation: Once confirmation of the transaction is completed, the amount paid will be credited, and a notification will pop up in the inbox of both the payer and payee.

Types of UPI QR Codes

UPI QR codes come in two varieties:

Static QR Codes: These hold unchanging information, like the receiver’s VPA, but need the person paying to type in how much they want to send. They work well for small shop owners and people selling things on their own.
Dynamic QR Codes: These have details specific to each sale, including a set amount to pay. Because they’re made fresh for every transaction, they give better protection and do more on their own. This makes them a good fit for more prominent companies and online stores.

Benefits of UPI QR Codes

Quick and Easy Payments: Stop worrying about cash or bank transactions. Within seconds, you can pay bills or send money with a UPI QR code. You only have to scan and tap, and it is done.
No More Mistakes: Have you ever made a typing error in a number as simple as an account number or an amount? Worry no more because scanning a QR code eliminates all the guesswork. You can be sure you always have the correct specifics.
Safe and Secure: Is security your primary concern? UPI has got you covered. Transactions are secured with encryption, fingerprint or facial recognition, and, most importantly, your personal UPI PIN. It is a digital bank vault.
Clean and Contactless: In a day and age where people are conscious about touching germs, the UPI QR code solves this concern. No cash or card is needed. Just a quick scan and any payment can be done. It is a small yet significant change.
Anyone Can Use It: One does not need to be tech-savvy to use it. If a person has a smartphone and a bank account, then UPI QR codes are at their disposal. It is bringing so many more people into the world of digital payment.
Within Reach of Everyone: Here’s something that businesses have come to appreciate: UPI transactions are devoid of sky-high charges. Or, they have nominal charges, which translates to savings for shopkeepers and traders.
Immediate Money Access: They also don’t have to wait for the money to arrive in their account. The money is deposited instantly, which is beneficial for low-scale vendors or people who need cash on hand instantly.

UPI QR codes aren’t just convenient—they’re transforming how we handle money, one scan at a time. Whether you’re a customer or a business owner, it’s hard to argue with faster, safer, and cheaper transactions.

How to Use a UPI QR Code

Using a UPI QR code for payments is simple:

Open Your UPI App: Launch your preferred UPI-enabled app.
Select the Scan Option: Tap the QR scan icon within the app.
Scan the UPI QR Code: Position your phone’s camera to scan the code.
Verify Transaction Details: Check the recipient’s name and the transaction amount.
Enter UPI PIN: Authorize the payment by entering your secure UPI PIN.
Receive Payment Confirmation: Once processed, you and the recipient will get a confirmation message.

Security Tips for UPI QR Code Transactions

Verify Recipient’s and Amount: Always check the recipient’s name and amount to be transferred before actually confirming any transaction.
Don’t Trust Unknown QR Codes: Scan only trusted QR Codes to avoid falling victim to scams.
Keep Your UPI PIN Safe: Do not share your UPI PIN with anyone, even if they claim to be a bank employee.
Keep Your App Updated: Regularly update your UPI App to make the best use of security features.
Monitor Your Transactions: Check your transaction history for unfamiliar transactions on a regular basis.
Report Suspicious Activity: Notify your bank or UPI provider as early as possible if you have even the slightest suspicion of any fraudulent activity.

Conclusion

With UPI QR codes, payments in India have changed dramatically and are marching us closer to a cashless world. They are very easy to use and quite secure and can be found almost everywhere, which makes them a prime choice for digital payments. Easebuzz - A payment solution company is moving forward with several innovative, safe payment options that recognize UPI transactions with ease for both businesses and individuals.

Suppose you are a business owner looking to streamline payments or simply someone who wants an efficient and stress-free way of carrying out transactions. In that case, UPI QR codes serve as a novel and basic solution for all.

FAQ's

How do I get a QR code for UPI?

Easily create a UPI QR code for your business with Easebuzz Payment Solutions. Register yourself on the Easebuzz dashboard, open the payments section, and enter the required details. Then, the QR code is generated, and you may immediately share it with customers, vendors, or merchants to collect payment easily. With Easebuzz, businesses get a dedicated QR code linked up to their UPI ID for quick, secure, and hassle-free transactions.

How do you create a QR code to receive payments?

Open your UPI application and head to QR code generation. Enter the required information, such as the amount (optional) or a note, and generate the QR code. You can now share the code with the payer for the transactions to avoid hassle.

What are the types of UPI QR codes?

There are two main types of UPI QR codes:

Static QR Code: A fixed code linked to a UPI ID, allowing users to make payments by entering the amount manually.
Dynamic QR Code: Generated for each transaction, containing specific details like the amount and order ID. These offer better security and automation, making them ideal for businesses.

How do you generate a payment QR code?

It is easy to generate a payment QR code using Easebuzz Payment Solutions or any UPI-enabled app. Head over to the QR code section, enter the recipient’s UPI ID (amount if required) and other details, and generate the QR code. This unique QR code can be shared for transactions.

How do UPI QR code payments work online?

UPI QR code payments can be made both online and offline:

Online: Scan the QR code displayed on a merchant’s website or Easebuzz payment gateway using your UPI app.
Offline: Scan the QR code at a physical store using your UPI app to make payments instantly.

What is a UPI QR code generator?

A UPI QR code generator is a tool that helps create QR codes for UPI payments. These can be found within UPI apps or online platforms. Businesses and individuals can use these generators to create QR codes to receive payments efficiently.