Introducing UPI Performance Guarantee: The New Standard for Enterprise-Grade Reliability

UPI isn’t just big anymore—it’s too big to fail. In October 2025 alone, Indians made 20.7 billion UPI transactions worth ₹27.28 lakh crore, a new all-time high.* Over the full year FY25, UPI processed 185.8 billion transactions, accounting for over 83% of all digital payments by volume in India.** For enterprises powering large scale commerce, though, UPI has quietly become something else entirely—core revenue infrastructure.

And when infrastructure wobbles, everything breaks.

How large businesses really experience UPI#

If you’re a large business today powering commerce, travel, mobility or entertainment - UPI is your default checkout. But as UPI scales, more challenges crop up:

1. Legacy systems not able to withstand the scale of UPI transactions leading to unexpected downtimes and breakages

2. “Deemed” transactions - where customer loses funds without merchant getting payment confirmation - destroying trust with customers

3. Visibility issues around refunds and chargebacks along with processing delays, flooding support queues, operations teams and finance teams alike.

4. Speed of deployment for new innovations becoming a bottleneck to power cutting edge use cases for customer delight

5. All of these challenges prompt large businesses to do multiple system integrations, legal contracts, spend operational overhead and invest across the board to simply manage UPI.

But we believe this shouldn’t be the case.

Introducing: UPI Performance Guarantee by Setu#

UPI Performance Guarantee is built on a simple belief: if UPI is mission-critical for you, then performance should be contractual, measurable and guaranteed

At its core, the product does three things:

1. Codifies performance in your contract: We agree on clear, hard targets for:

• Success rates

• Uptime

• Refund timelines

• These aren’t just vanity numbers on a dashboard—they’re written into your commercial agreement, with compensation if targets aren’t met. If performance drops below what we promised, we pay you back.

2. Improves success rates by design, not by luck: Under the hood, Setu runs its own UPI

• Acquiring switch, giving deep visibility into the payment flow - from the moment the customer taps “Pay” to settlement.

• We eliminate “deemed” transactions, so your success rate reflects actual money movement, not convenient assumptions.

• Cloud-first, auto-scaling microservices ensure your UPI stack can handle high-volume traffic without buckling during peaks.

• Because Setu manages the UPI stack, you get stability and agility without being tied to individual bank release cycles.

3. Turns refunds and chargebacks into protection, not just damage control

Using UDIR-based instant refunds, we dramatically reduce refund delays and the operational chaos around fraud-related chargebacks all the while providing better visibility and controls to you. Customers get their money back faster, and because UDIR also powers strong chargeback protection, you reduce both customer pain and operational risk around disputes.

Your support team deals with fewer angry tickets. Finance gets cleaner reconciliation and fewer surprises. Your customers are not ranting on X, LinkedIn against your brand.

Radical transparency, not black-box payments#

Most enterprises today rely on after-the-fact MIS and anecdotal “it seems fine” updates from multiple partners. With UPI Performance Guarantee, you get:

• Exact reasons for failure: Straight from the horse’s mouth (NPCI) with clear categorization around whether this is a business validation failure or a technical failure

• At which layer did the transaction encounter a problem - the payment app, PSP or the Bank

This shifts the conversation in internal reviews from “UPI is unstable” to something more concrete, like: “We saw a performance dip in this path between 7–9 PM, here’s what failed, and here’s how we responded.” No guesswork, no blind spots.

Why this is a game changer for large businesses

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For leadership teams, this product changes how UPI shows up on the dashboard:

• CRO & Growth see higher conversion, fewer drop-offs at payment, and reliable success rates even during campaigns and peak events.

• CFO & Finance see fewer write-offs, stronger chargeback protection for customers, reduced operational risk, and cleaner, more predictable collections.

• Operations see fewer escalations, faster resolution of payment issues, and clearer playbooks during spikes and incidents.

• Product & Engineering get out of constant firefighting mode and back to building better checkout experiences and new journeys.

• Customer Support & CX see lower ticket volumes and fewer escalations.

As UPI continues to scale and set global benchmarks, enterprises can no longer treat UPI reliability as “technical hygiene”. It’s now a strategic moat—and a shared balance-sheet risk.

Conclusion: From hoping for performance to demanding it

Most businesses are still treating UPI like weather—checking the forecast, hoping for clear skies, and scrambling when the storm hits. The ones who will win the next decade are those who turn that uncertainty into a designed, guaranteed system with a partner who is contractually accountable for what matters: success rates, uptime and refunds. UPI Performance Guarantee makes UPI a written promise: key metrics are contractually guaranteed, and if they slip, Setu is financially accountable. It turns UPI performance from a risk into a clearly owned responsibility.

Curious what that shift would mean for your business? 👉 Request a performance deep-dive with Setu’s team and see how a guarantee-backed UPI layer could change your revenue, risk and customer experience.