Introduction
India’s digital economy is growing at an unprecedented pace, making it a lucrative market for international businesses. However, many global companies struggle to convert Indian customers because they don’t speak India’s payments language.
Unlike Western markets dominated by credit cards, India operates in a UPI-first world. The Unified Payments Interface (UPI) accounts for nearly 80% of all digital transactions, making it the backbone of Indian payments. Additionally, RuPay, India’s indigenous card network, has gained widespread adoption, especially after its recent integration with credit on UPI.
If your business does not support these payment methods, you’re missing out on the Indian market. Let’s explore why global businesses struggle with Indian payments and how you can fix it.
1. The Problem: Why Global Businesses Fail to Convert Indian Customers
A. Ignoring UPI – The Default Payment Method in India
UPI has transformed the way Indians pay. As of January 2024, UPI processed 12.20 billion transactions worth ₹18.41 trillion—a 52% increase in volume and a 42% increase in value compared to the previous year.
Despite UPI’s dominance, many international businesses only accept credit cards and PayPal, overlooking the payment method that most Indian consumers prefer. This leads to:
- Lower conversion rates – Customers abandon checkouts if their preferred payment method isn’t available.
- Lost revenue opportunities – Businesses alienate a massive customer base by not offering UPI.
B. Overlooking RuPay – India’s Own Card Network
RuPay, India’s answer to Visa and Mastercard, has rapidly gained market share. It now accounts for 16% of all credit card spending in India. With RuPay credit cards now enabled on UPI, its usage is only set to grow.
Ignoring RuPay means missing out on millions of customers who rely on it for online transactions. Many Indian consumers don’t even own an international Visa or Mastercard, making RuPay support critical for any business operating in India.
C. High Failure Rates for International Card Payments
Even if businesses do accept international credit cards, they often face low success rates due to India’s strict security protocols:
- Mandatory OTP authentication for online card transactions.
- Bank declines due to fraud prevention measures.
Without native OTP support and a payment system optimized for Indian banks, global businesses experience frequent payment failures, frustrating customers and leading to abandoned purchases.
2. The Solution: Aligning with India’s Payment Preferences
A. Accept UPI Payments
To unlock the Indian market, international businesses must integrate UPI. This enables them to:
✔ Accept instant, seamless payments from 500M+ active UPI users.
✔ Offer UPI Autopay for subscriptions, making recurring payments easy.
✔ Support credit on UPI, allowing RuPay credit card holders to transact effortlessly.
B. Enable RuPay Card Payments
By accepting RuPay, businesses gain access to a growing segment of Indian shoppers who rely on RuPay debit and credit cards for online payments. Supporting RuPay builds trust and increases conversion rates.
C. Improve Payment Success Rates with Localized Solutions
To maximize success rates, businesses need a payment partner with:
✔ An in-house UPI switch for the highest success rates on UPI transactions.
✔ Native OTP integration for smooth and secure card transactions.
3. How Razorpay Helps International Businesses Accept Indian Payments
Razorpay Import Flow makes it effortless for international businesses to accept payments from Indian customers without setting up a local entity.
🔹 Full UPI support – Accept payments via UPI, including UPI Autopay and credit on UPI.
🔹 RuPay acceptance – Process payments from both RuPay debit and credit cards.
🔹 INR settlements in your preferred currency – Get paid in INR and receive settlements in your international bank account in USD, EUR, GBP, or any preferred currency.
🔹 Highest success rates – Benefit from India’s best UPI stack and native OTP support for card payments.
Conclusion
India is one of the fastest-growing digital economies in the world. But to tap into this market, global businesses must align with India’s preferred payment methods—UPI and RuPay.
By adopting a UPI-first approach, businesses can:
✅ Increase conversion rates
✅ Reduce cart abandonment
✅ Boost revenue from Indian customers
With Razorpay Import Flow, international businesses can seamlessly accept INR payments, settle them globally, and unlock India’s massive customer base with zero friction.
