Customers today expect fast, secure, and digital payment options — whether you're a kirana store, a boutique, or a small factory. This guide helps MSMEs in Tier 2/3 cities choose the right digital payment tools to collect payments without high fees, fraud risks, or tech confusion.
Top 5 Digital Payment Options MSMEs Should Know
1. UPI QR (Zero-Cost, Instant Payments)
Use If: You sell directly to walk-in customers or through delivery.
Accepts: PhonePe, Google Pay, BHIM, Paytm
Easy to print and display
Settle to bank instantly (if merchant QR used)
How to Get a Merchant QR: Apply via Paytm Business, BharatPe, or your bank. Use PAN + bank details + GST/Udyam (optional).
Tip: Avoid using personal UPI for high-volume business — it may get blocked or taxed.2. Razorpay Payment Links – For Bulk or Remote Orders
Use If: You sell to customers in other cities via WhatsApp or Instagram.
Generate a payment link with item name + amount
Share via WhatsApp/SMS
Accepts UPI, cards, netbanking
Automatically settles to bank
Ideal For:
Small manufacturers selling via groups
Clothing or decor sellers with custom orders
Taking advance payments
Free Setup: No monthly cost, only per-transaction fee (1.75–2%)
3. Paytm Soundbox or QR Devices – For Busy Shops
Use If: You run a high-traffic store (general store, bakery, tea shop).
Soundbox announces payment confirmation
Safer than waiting for customer to show screen
Comes with printed QR, monthly rental (₹50–₹150)
Bonus: Soundbox increases trust among walk-in customers
4. Swipe Machines (POS Terminals)
Use If: You sell higher-ticket items or serve corporate customers.
Accepts: Debit/Credit Cards, Wallets, UPI
Examples: Pine Labs, Mswipe, HDFC, SBI
Charges: 1.5–2.5% fee, settlement in 24–48 hrs
Tip: Choose machines with UPI + Card combo if you sell to mixed customer types. Ask for monthly rental-free machines if you do >₹30K/month5. WhatsApp Business + UPI – For Resellers & Home Businesses
Use If: You mostly take orders via WhatsApp or Facebook.
Set up WhatsApp Business with catalog
Add UPI payment details in message templates
Send “Click to Pay” messages after order
Combine with GPay or PhonePe business QR to keep things organizedWhich is Best Based on Business Type?
Beware of These Common Mistakes
Using personal UPI for large payments – May trigger bank/KYC issues
Not checking fees – Some fintech apps charge hidden TDR (transaction) fees
Missing KYC – Unverified accounts may face delayed settlements
No payment confirmation – Leads to disputes with customers
Final Tips to Go Fully Digital
Register on BharatQR or NPCI UPI Merchant Portal for official QR
Link your current account, not savings account
Offer ₹5–10 discount on UPI to reduce cash handling
Add payment method on invoices, visiting cards, and product tags