Four Square Payments India - Difference Between UPI and Payment Gateway Explained in One Article

　　### UPI and Payment Gateway Differences in Depth

　　##### 1. UPI Overview

　　UPI (Unified Payment Interface) or Unified Payment Interface of India is a system that integrates multiple bank accounts and allows users to quickly route funds and make merchant payments through just one mobile app.

　　##### 2. Main Functions of the UPI

　　UPI's main functions include:

　　- Accounts can be opened without submitting documents.

　　- Transfers can be realised anytime, anywhere.

　　- IQR codes simplify the transaction process.

　　- One app accesses multiple banks.

　　- Supports one-click and two-factor authentication.

　　- Merchants can receive payments through a single application.

　　- Users can make instant transactions without ATM withdrawals.

　　- Support for complaints within the mobile app.

　　- Payment of utility bills.

　　- Enabling donations, collections and flexible spending.

　　##### 3. Definition of Payment Gateway

　　A payment gateway is a system that collects payment information from the client and transmits it to the acquirer, which then sends the payment result back to the customer. It acts as an interface between the merchant's website and the acquirer, protecting key data such as credit card and payment details.

　　##### 4. whether the UPI is a payment gateway

　　UPI is not a payment gateway, but a simple network for inter-bank transfers. Users can send or receive funds instantly without having to provide detailed banking information. A payment gateway, on the other hand, is a more complex tool that involves multiple underlying processes and steps to enable the transfer of funds between customers and merchants.

　　##### 5. Difference between UPI and Payment Gateway

　　According to data provided by the National Payments Corporation of India (NPCI), in February 2021, the number of transactions through UPI reached 2.29 billion. Although UPI payments are widely accepted in urban and rural India, they are less secure than payment gateways. Here are the key differences between UPI and payment gateways:

　　- **Functional features**: Payment gateways support multiple payment methods, international payments, fast integration and pricing, while the UPI selection process is simpler.

　　- **Payment methods**: Payment gateways allow users to conduct online transactions through different payment methods, while UPI is integrated into a single mobile application.

　　- **Security**: Payment gateways offer a high level of security, while UPI has a relatively low level of security.

　　Atpay - As a professional provider of payment solutions, we are deeply involved in payment services in India and have provided payment functionality to countless clients. We are confident about payment integration and high-risk payment processing and welcome inquiries and conversations.