How does UPI really work?

[@yashasvprajapati6851]

Your videos always cover something interesting, diving deep into something, really cool, love your videos.

[@bhumit070]

Bruh we need more info, like - How did you reach out to bank? - How much % they are charging and more info

[@SaketK11]

No info is available

[@Creativeworld-123fs]

indeed mate, would love to know more about this as i will need to add this to my product as well

[@laviray5447]

This is the most important info we need not really the one he shared about how UPI works.

[@xtan-io]

It's not important, even if you are gonna implement the same it would be different. different banks have different procedures, you have have to show proofs that you are earning this much and all that.. and i don't think its good for a business to do that in the first place. you can't open source the business model

[@user8921]

i was going to write the same.

[@BingeWatcher247]

❤ UPI is a Revolutionary technology, Thanks For Explaining this Business Related UPI works.

[@Venkatesh-vm4ll]

But u didn't tell how did u do that?

[@anonymousperson9929]

He probably negotiated with YesBank.

[@legcyyt]

​@@anonymousperson9929 we have to connect with bank for the api ??

[@xtan-io]

It's not important, even if you are gonna implement the same it would be different. different banks have different procedures, you have have to show proofs that you are earning this much and all that.. and i don't think its good for a business to do that in the first place. you can't open source the business model

[@haha7836hahah]

Great video. Can you make a video on how bigger companies go around building their own gateways. Obviously not asking for a tutorial but a general architecture and involvement of government entities etc in the process

[@chanikya_7]

After all this, i can just say Thank You for providing high quality content to indian developer community

[@yashsolanki069]

So is this custom UPI method being used by zomato/swiggy as well? I feel like they are not using razorpay or some gateway but not sure tho. Edit: Please also cover in some other video that what's the role of the bank that helps you facilitate this transactions.

[@codedamn]

I believe zomato/swiggy use juspay.io which is a routing layer on top of many other payment gateways too. i've seen razorpay being used in swiggy via juspay. maybe they use more gateways for reliability. also i'm very sure razorpay probably gives close to 0% transaction rate (or a fixed rate) to players like swiggy.

[@Ilovemonkey123]

they use juspay

[@yashsolanki069]

@Ilovemonkey123 both Zomato and swiggy? Is there a blog mentioning this

[@Ilovemonkey123]

@@yashsolanki069 juspay claims in there Landing Page Zomato/swiggy are there customers

[@samarthdhawan2229]

Hi mehul great video, can u please guide how to setup our own upi gateway by communicating to a bank.

[@3x10.8_ms]

just like you said: we need 10% to manage the infra, the same way razorpay also needs 2% to manage their infra

[@codedamn]

For UPI they are not doing much. If you want to use them sure but we didn’t feel the need to give 2% for generating a QR code and a webhook call

[@uday4717]

​@@codedamn Thanks 👍👍 Mehul

[@uday4717]

Can you make a video on how to build a UPI system

[@ipushprajyadav]

Today I learned !

[@Spider-Man_67]

Amazing Video Mehul, thanks for this, need more such type of content.

[@Sandeep-zd6dq]

Woh this is awesome and 100% agree why to pay if it’s free but how did you manage to get this done from your bank (yes bank) and will they do this for smaller firms as well

[@codedamn]

they should, you can contact bank to learn more

[@SinghShisht]

We are using Atom Payment Gateway, It charges 0/- for UPI

[@uday4717]

Fermion need to go globally

[@uday4717]

Can you tell how to build upi like fermion use

[@sumitpurohit8849]

Can you please make a video on why stripe is invite only in India now?

[@wlockuz4467]

I think it was because of regulations

[@viralgupta7636]

2 questions: 1) i have not used razorpay in prod but have gone through the pricing mode and they also charge 0% if the transaction was via UPi (not sure tho), so ig its the same thing if you disable all the other payment options in razorpay other than UPI. 2) could you tell which service you used for generating upi id and getting a webhook request when upi transaction is complete, and does it require a GST number to use this service? (Want to use this service in small personal projects)

[@codedamn]

I’ve seen myself in Razorpay dashboard where we have paid fee for UPI transactions. We partnered up with a company that has aggregator license and negotiated a custom offer (keeping it unnamed to avoid people using us to negotiate their own rate)

[@akshaygadekar9926]

You took help of which provider for UPI integration?

[@codedamn]

Not a well known player. Negotiated directly with them for rate

[@adithsuhassv]

@@codedamn please let me know name ?

[@tanishq-singh]

Can we individuals use this tech in our site? Assuming no business site, Without razorpay

[@codedamn]

you need to be a registered business as far as i know. you cannot accept payments as an individual (outside of regular UPI which has limits like max 1 lakh per day, etc.)

[@srinivasd2712]

Bro why it take some time for merchant to add money to their bank account like 1day time

[@quickindiarecipe]

Phonepe also does not charge for upi integration

[@codedamn]

They charge now. We use them

[@guitarhero69]

thanks

[@edocdrah]

So, afaik any PA PG company like Razorpay or Cashfree do not charge anything on UPI transactions. Only on cards and EMI type modes or netbanking in some cases they do. So what you are efeectively talking about in the video is just the mode of the appearance of the checkout page. Because the integrations are free to use.

[@aryanhegde5639]

They do charge bro.

[@harshitpant07]

just adding my 2 cents its not easy to communicate with banks like how razorpay or stripe does you need a good substantial backing of finance I heard around 25k crore should be the starting amount* as a business then only you can start conducting transaction via your platform with these banks.

[@codedamn]

What you’re saying is true and is a requirement for payment aggregator license from RBI

[@Neil.Menezes]

I want to know what's inside that green box.. I thought that's what this video was about.

[@MuthuPalaniyappanOL]

What's the bank name?

[@MuthuPalaniyappanOL]

Did u guys collaborate with yes bank?

[@benarcher372]

So, what is the fee? Is it less than 1% ?

[@codedamn]

Yes

[@arkodeepchatterjee]

please tell in details how do you do it

[@user8921]

my wild guess after reading comments: basically bro's accepting payments into merchant account through upi and bro partnered with some account aggregator to detect payment status and he's charged for the service provided by them and not the bank.

[@manishgautam2424]

how , i need help for this

[@sachikantaraul]

can we built a saas through this and can sell through subscription charges?

[@codedamn]

No you need payment aggregator license from RBI to do that

[@sachikantaraul]

@@codedamn ok, but after getting the license I think it will be profitable as it cuts the extra percentage

[@AnotherComment-rl6fv]

There is Zero MDR for debit cards

[@abhi3700orig]

How come it's FREE, when ultimately you have to talk to one of these banks eventually. Yes you can reduce the fees compared to Razorpay. But as a developer, it's so not developer-friendly 🤦‍♂. I think Govt. of India could have made APIs publicly available so that anyone could access. And on top of that they could levy 1%. So, it would have been very easy for businesses. And this is what I hate about fiat payment system that the commission is charged on top of the payment amount unlike crypto, where it depends on the VM's compute unit. Imagine paying 50 ₹ vs 100₹. I am sure compute wise, they won't make difference. But, still these payment networks would charge double in this case in proportion to the payment amount.

[@nofoobar]

I once built a hacky UPI system with my own QR code. The problematic thing was, I had to make prices unique in order to uniquely identify who transacted. (^_^)

[@codedamn]

Haha this is very clever but I like it!

[@user8921]

well, instead of manipulating prices, why not use notes we use our phonepe merchant qr on our website, basically we just attach the price and note which includes order id that's the same as order-id used by us to handle orders

[@msdhaliwal]

stripe won't negotiate? stripe gave us 0.20% off on fees after almost 1 - 1.5 years of usage

[@codedamn]

wow, okay!

[@RiteshNEVERUNIFORM]

Is it UPI setu powered?

[@codedamn]

No; but it is also something that is interesting and available. The other option is decentrotech

[@RiteshNEVERUNIFORM]

@codedamn Thanks

[@deepaktechk]

It's a generic video, need more details

[@lalruatsangabawitlung3728]

🎉

[@ooogabooga5111]

So you will pay developers lakhs and banks lakhs to manage and maintain a system to sqeeze pennies. interesting.

[@codedamn]

Squeeze pennies? Doing 10cr a month and saving 20lakh in transaction fee a month, translating to 2.4cr a year is pennies to you?

[@ooogabooga5111]

@@codedamn okay 10cr a month, then its worth something.

[@YessEthan]

​@@ooogabooga5111 bro In india upi is doing 15 billion transaction per month.. So.. Its taking indian market to cashless and govt printing money being allocated to banks... So its good.. Also UPI charges mobile recharge / billis payment mere 2,3 ruppe depending on apps so...Upi doing more than 5K transaction a second so.. Its that 2,3 ruppe is mammoths for Apps and server cost covered by GOI... Mutually benefial... Even MasterCard/visa cards share dip dive becz GOI (govt of India) launched its card with no ruppe to acquire Card and No card fees for first 50 transaction... Thry file case as Nobody wins Against GOI. 😂😂

[@Yesterday_i_ate_rat]

@bytemonk