India isn’t a card-first market. It’s a UPI-first one.
In July 2026, India’s instant payment system United Payments Interface (UPI) processed more than 33 times as many payments as credit and debit cards combined: 23.66 billion, compared with 707 million.
If you’re selling software or apps in India, that matters. If your checkout requires card payment, you could lose customers before they complete their purchase.
Here’s what you need to know about the main Indian payment methods, which ones to prioritize, and how to offer them without building your payments setup from scratch.
What are the most popular payment methods in India?
Method | How it works | Relevance for software and apps |
|---|---|---|
UPI | Customers pay directly from their bank account using an app such as Google Pay, PhonePe, or Paytm | Essential. It’s the leading digital payment method in India, with UPI Autopay supporting subscriptions |
Credit and debit cards | Customers pay using a card such as Visa or Mastercard | Important for higher-value and cross-border purchases |
Digital wallets | Customers pay from a stored balance | Useful for businesses whose customers already use specific wallet apps |
Net banking or online banking | Customers log in to their bank’s website to approve a payment | A useful fallback, but it adds more steps |
What’s UPI, and how does it work?
UPI is India’s instant bank-to-bank payment system, run by the National Payments Corporation of India.
Customers don’t need to enter card details to use it. They open their UPI app, approve the payment on their phone, and enter their UPI PIN.
And it’s how most digital payments happen in India. In fact, UPI now accounts for 86% of all digital transactions in the country.
If you only accept cards, you’re asking customers to pay in a way that’s less convenient to them. Offer UPI, and you meet them where they already are.
Are credit and debit cards widely used in India?
Yes. Cards still matter, particularly for higher-value and cross-border payments. Supporting both cards and UPI gives customers the flexibility to pay in the way that works best for them.
There are two things to consider when accepting cards issued in India:
- Extra authentication: Cards issued in India often require customers to confirm a payment with a one-time password or PIN
- Rules for recurring payments: Customers need to authorize repeat payments, with additional requirements around notifications and changes to recurring charges.
That can make recurring payments more complicated than a one-time card purchase.
You might also have heard about RuPay, India’s domestic card network. Some RuPay credit cards can be linked to UPI apps, giving eligible customers another way to pay through the UPI experience.
For most software and app businesses, prioritize:
- UPI for everyday purchases and lower-priced plans
- Cards for higher-value purchases and international customers
- Other methods when your customer data shows there’s demand.
Want the full picture on tax, compliance, and getting more payments approved in India? Read our guide to accepting payments in India.
How do recurring payments work in India?
Getting the first payment is one thing. Keeping a subscription active is another.
That’s where recurring payment mandates come in. Customers give permission for future payments when they subscribe, so you can collect renewals without asking them to manually pay every time.
With UPI, that happens through UPI Autopay.
How does UPI Autopay work?
With UPI Autopay, customers approve a recurring payment mandate with their UPI PIN at checkout.
After that:
- The customer receives a pre-debit notification at least 24 hours before the payment is collected
- The mandate sets the amount that can be collected, so a change to the renewal price may require the customer to approve a new mandate
- The customer can manage or cancel the mandate through their UPI app.
That makes an important distinction for subscription businesses. It’s not enough to ask, “Can my customer pay this way?” You also need to ask, “Can they keep paying this way?”
How Paddle helps you sell in India
Selling in India means working out how to accept local payments, handle recurring mandates, recover failed payments, collect and remit tax, and keep up with local requirements.
With Paddle as your Merchant of Record, you don’t have to manage any of it. That’s because Paddle legally sells your product to your customer and handles the payments, tax, and compliance that come with the transaction.
For India, that means you can:
- Offer the payment methods customers expect: Accept UPI for one-time purchases and UPI Autopay for subscriptions, with payments processed in Indian rupees (INR)
- Skip the local setup: Start accepting UPI without setting up an Indian bank account or UPI merchant account
- Keep subscriptions moving: Use Paddle Retain to recover failed payments and prompt customers to approve new mandates when needed
- Stop worrying about tax and compliance: Paddle handles sales tax and regulatory compliance on your behalf - across more than 205 countries.
And when you’re ready for your next market? We’ll support you there, too.
