The National Payments Corporation of India introduced UPI as an instant payment system, bringing about a significant transformation in the payment industry. UPI enables seamless and instantaneous fund transfers between bank accounts. However, it is essential to have a unique UPI ID to make payments.

Investors can use UPI to approve IPO mandates on their payment apps and complete their IPO applications. Once their orders are placed, they can simply use platforms like Google Pay and PhonePe to complete their transactions via IPO mandate requests. In the sections below, we discuss these two payment gateways for IPO applications.

• UPI is an instant payment system that helps conduct fund transfers between bank accounts through a unique UPI ID.
• UPI payment gateways such as Google Pay and PhonePe can be used to accept mandates for IPO applications.
• Once the IPO mandate request is accepted, the payment is completed using the investor’s UPI PIN. The payment goes through after the shares are officially allotted to the investor.

Follow the steps listed below to approve IPO mandates on Google Pay.

1. Once your bids are submitted for an IPO, you will receive a mandate approval notification on your Google Pay app. Please note that this may take up to 24 hours.
2. Go to your profile section on Google Pay→ settings→ one-time mandate to proceed further.
3. If you are unable to find the profile section, try checking the top right corner of the screen.
4. Click on ‘One-time mandate’; the mandate request should be visible under ‘Pending’.
5. You can now click ‘Authorise’ to accept the IPO mandate request.
6. Finally, enter your UPI PIN and complete the transaction from your end. Once the shares are allotted, your payment will be debited; till then, it will be blocked in the account.
7. You can check the status of your allotment on the IPO dashboard.  

Follow the steps listed below to approve IPO mandates on PhonePe.

1. Once your bids are submitted for an IPO, go to your PhonePe app. You will receive the mandate approval notification from the National Payments Corporation of India (NPCI). Please note that this may take up to 24 hours.
2. You may see a pop-up alert on the app, notifying you about a mandate request.
3. Click on ‘View details’ to review the request.
4. Now, you must click on ‘Accept’ to give the final approval.
5. In the final step for using PhonePe UPI for the IPO application, your amount will be blocked in your bank account. As soon as your shares are allotted, the money will be debited automatically.
6. You can check the status of your allotment on the IPO dashboard.

Here are some benefits of using UPI for IPO application payments.

• UPI payments do not incur any extra fees or charges.
• Refunds are easy and quick, as customer care can be contacted instantly. Their responses are prompt regarding technical issues or transaction failures.
• Payment gateways like Google Pay and PhonePe regularly send notification

When raising an IPO application on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE), you can opt to use your UPI ID as a payment method. You need to direct your broker to use this mode while submitting the IPO application. After submission, it is crucial to accept the IPO mandate received on your UPI application to successfully subscribe to the IPO. Both PhonePe and Google Pay are acceptable and convenient options.