UPI 'Request Money' Is Gone: How Instagram Sellers Should Collect Payments in 2026

By Shopmyfeed Team

If you sell on Instagram or WhatsApp, you may have noticed that the UPI request money option no longer works when you try to send a payment request to a buyer. That is not a bug in your app. Since 1 October 2025, NPCI has stopped person-to-person (P2P) collect requests on UPI. You can still receive money on UPI. What changed is how you ask for it: the buyer now has to scan your QR code, open a payment link, or pay at a checkout. This guide explains what changed, what did not, and the simplest way to collect UPI payments as a small seller in 2026.

What exactly changed on 1 October 2025?

A "collect request" is when you send a request for a fixed amount, like ₹1,200, to the buyer's UPI ID, and the buyer only has to approve it with their PIN. Many Instagram sellers used this from Google Pay, PhonePe or Paytm because the amount was filled in for the buyer.

In a circular dated 29 July 2025, NPCI said P2P collect requests would not be allowed from 1 October 2025. The reason was fraud: scammers were sending fake "request money" messages, and people approved them thinking they were receiving money.

Two things did not change:

Receiving money on your UPI ID still works. The buyer can pay you by scanning your QR or typing your UPI ID.
Merchant collect requests (P2M) still work. Businesses using a proper payment gateway or a merchant UPI setup can still send payment requests and use checkout pages.

Can I still take business payments on my personal UPI?

Yes. There is no rule that stops a small seller from receiving payments on a personal UPI ID. You may have seen messages saying "business payments on personal UPI are banned". That is not true.

The real problem is the extra work. Without collect requests, a typical Instagram order now looks like this:

Buyer DMs "price?"
You reply with the price, then your UPI ID or QR.
Buyer types the amount by hand (sometimes wrong).
Buyer sends a screenshot.
You open your bank app to check that the money actually came.
You ask for the address in another message.

Six steps, many messages, and a lot of places for mistakes or fake screenshots to slip in.

3 ways to collect payments now

1. A QR code with the amount already filled in

A UPI QR can carry the amount and a note, so the buyer only scans and enters their PIN. This is the closest thing to the old collect request. The catch: making a new QR for every order by hand is slow, and you still have to check your bank app to confirm the money arrived.

2. A checkout or payment link

With a payment gateway, the buyer pays on a checkout page by UPI, card or net banking, and the payment is confirmed automatically. You don't need to check screenshots. Gateways charge a small fee per payment, and the money reaches your bank on a settlement cycle, not instantly.

3. Cash on Delivery

COD is still what many buyers in India trust most, especially for a seller they found on Instagram. It brings more orders, but also more returns and refused parcels. Many sellers offer both: prepaid for regular buyers, COD for first-time buyers.

The risks of using personal UPI for a growing business

Personal UPI is fine when you are starting out. As orders grow, keep these in mind:

Limits on small-merchant UPI IDs. UPI IDs given to small sellers without full business checks (called P2PM) have lower limits under NPCI's 2024 rules, around ₹1 lakh a month in total. Busy sellers can hit this.
Tax notices. In July 2025, Karnataka's tax department sent notices to around 6,000 small traders whose UPI receipts crossed the GST registration limit. Personal transfers from family were counted as sales too, which made it messy to explain. Keeping business and personal money apart makes this much easier.
Frozen accounts. When a payment you received is later linked to a cyber fraud complaint, police can ask the bank to freeze the account. Courts in Andhra Pradesh and Kerala have questioned freezing whole accounts, but it still happens. If your only savings account is also your shop account, a freeze stops everything.
Fake payment screenshots. Edited screenshots are common. Never ship on a screenshot alone. Always check your bank or UPI app.

We go through each of these risks, and when to switch to a business setup, in Can you use personal UPI for business?

What about the 0.4% UPI charge for merchants?

A 0.4% fee (MDR) has been announced on certain person-to-merchant UPI payments above ₹2,000. Normal payments between people stay free, and NPCI has told the Supreme Court that merchants cannot pass this charge on to buyers. The start date has moved more than once, so check NPCI's latest update before you plan your prices around it.

A simple setup for Instagram sellers

Put one store link in your Instagram bio with prices, sizes and photos, so buyers don't need to DM "price?".
Let buyers place the order themselves, with their address, so nothing gets lost in chats.
Show a UPI QR with the amount filled in at checkout, or use an online checkout that confirms payment automatically.
Offer COD for buyers who don't know you yet.
Check every UPI payment in your bank app before you ship. Ignore screenshots.
When you grow, open a separate account for the business.

How Shopmyfeed helps

Shopmyfeed gives you an online store for your Instagram bio, and you can start free. Buyers browse your products and place orders with their address. They can pay to your own UPI ID using a QR code that already has the order amount, or choose Cash on Delivery. Every order lands in one list with the buyer's details and amount, so you just match it with your UPI app. On the Growth plan and above, buyers can also pay through a proper online checkout with UPI and cards, and the payment is confirmed for you.

No more "price?" DMs, no typing amounts, and no hunting through chats for addresses.

Sources

Frequently asked questions

Why is UPI request money not working?

NPCI stopped person-to-person UPI collect requests from 1 October 2025 to cut down on fraud. You can still receive money. The buyer just has to scan your QR, enter your UPI ID, or pay through a checkout.

Can I still receive business payments on my personal UPI ID?

Yes. No rule stops small sellers from receiving payments on a personal UPI ID. As you grow, keep business money in a separate account to avoid limits, tax confusion and the risk of a frozen account.

Do merchants still get UPI collect requests?

Yes. Only person-to-person collect requests were stopped. Businesses using a payment gateway or merchant UPI can still use payment requests and checkout pages.

How do I stop fake UPI payment screenshots?

Never ship on a screenshot alone. Check every payment in your bank or UPI app, or use an online checkout that confirms the payment for you.

Will buyers pay the 0.4% UPI charge?

No. The announced 0.4% fee applies only to certain merchant payments above ₹2,000, and NPCI has said merchants cannot pass it on to buyers. Check NPCI's latest update for the start date.

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