The last few years have transformed the payments landscape in India, with 2025 poised to be the tipping point for truly digital-first merchant ecosystems. From local kiranas to global exporters, Indian merchants today expect far more than simple transaction processing; they demand a holistic, intelligent, and business-friendly payment experience from Payment Platforms.
Seamless Digital Acceptance Across Channels
India’s rapid shift away from cash is no longer a trend – it is the default. Merchants want to accept payments anytime, anywhere, whether on mobile devices, through offline QR codes, or via feature phones in rural belts.
What merchants expect:
- Support for UPI, cards, wallets, and contactless payments
- Consistent performance even in low-connectivity regions
- Minimal setup costs
The Rise of Advanced UPI
UPI is no longer just peer-to-peer; it is a merchant backbone. Unified Payments Interface (UPI) transactions surged to an all-time high of 18.68 billion in May 2025. The total transaction value hit ₹25.14 trillion, the highest ever, according to data from the National Payments Corporation of India (NPCI). Latest UPI enhancements, such as dynamic QR codes, overdraft support, UPI Lite X, and voice-enabled payments, have expanded the toolkit for merchants.
What merchants expect:
- Easy integration with the latest UPI 3.0 features
- Voice-enabled payments for non-English-speaking customers
- Instant settlement with no downtime
Real-Time Settlement as a Standard
With razor-thin working capital cycles, merchants can no longer afford settlement delays. They want real-time or near-real-time settlement to manage inventory, cash flow, and supplier payments.
What merchants expect:
- Instant settlement to bank accounts
- Clear, transparent settlement timelines
- Alerts and tracking for reconciliations
Fraud Prevention Powered by AI
Fraud cases in digital transactions have risen notably in India over the last three years. That means merchants will look for platforms offering advanced fraud detection powered by artificial intelligence.
What merchants expect:
- Real-time transaction monitoring
- Chargeback reduction tools
- Secure, tamper-proof authentication
Omnichannel + Contactless Convenience
Indian shoppers now expect to pay via tap, QR, voice, or even biometric authentication.
What merchants expect:
- One system to handle cards, wallets, BNPL, and UPI
- Contactless payment fallback options
- Simplified refunds and dispute management
Embedded Finance and Value-Added Services
Merchants, especially MSMEs, want more than just payment acceptance. They want cash advances, working capital tools, loyalty program integrations, and GST filing automation within their payment platforms.
What merchants expect:
- Inventory management sync
- Integrated tax compliance tools
- Business loans and embedded credit
Multi-Currency & Cross-Border Capabilities
As more merchants tap global buyers, seamless cross-border settlement has become crucial. Platforms that can manage virtual foreign currency accounts and handle compliance will gain an edge.
What merchants expect:
- Multi-currency support with live FX rates
- Low-cost international payouts
- Regulatory compliance in cross-border payments
Transparent Fees and Regulations
Merchants are paying close attention to MDR (Merchant Discount Rate) and settlement fees.
What merchants expect:
- Full visibility of charges on dashboards
- Consistent, predictable fees
- No hidden settlement holds
ONDC and Rural Inclusion
The Open Network for Digital Commerce (ONDC) is transforming how MSMEs join e-commerce. Combined with UPI and vernacular user interfaces, ONDC is expected to add millions of small businesses to the digital payments network.
What merchants expect:
- Support for interoperable QR
- Vernacular language interfaces
- Offline and low-bandwidth modes
Digital Rupee & Programmable Payments
India’s CBDC pilot, the e₹, clocked 1 million daily transactions by late 2023. Merchants want platforms that will integrate digital rupee support with offline capabilities and programmable features such as conditional payouts or subsidies.
What merchants expect:
- CBDC compatibility
- Offline acceptance
- Smart contract-based settlement tools
In Summary: The Merchant Wishlist for 2025
| Expectation | Why It Matters |
| Multi-method acceptance | No missed sales |
| Real-time settlement | Improved cash flow |
| AI-driven fraud protection | Trust and chargeback control |
| Contactless & omnichannel | Consistent customer experience |
| Embedded finance services | Boosts business growth |
| Transparent pricing | Builds merchant confidence |
| Cross-border/multi-currency | Grows global reach |
| CBDC support | Prepares for the next wave of payments |
| ONDC & rural features | Empowers MSMEs and local businesses |
As India’s payment landscape evolves, so do merchant expectations. They no longer see payment platforms as ‘pipes’ for money. They increasingly see payment platforms not just as transaction enablers, but as strategic business partners.
