The Perfect Guide to Merchant Onboarding Process

The Perfect Guide to Merchant Onboarding Process

Making Merchant Onboarding Easy

For merchants, one of the most difficult tasks is streamlining their cash inflow and outflow. One missing bill can create problems during the auditing, hence why most merchants have now started to opt for banking applications that offer them multiple features to make the transaction easier for them.

However, while opting for these applications to depend upon, there are multiple things you must keep in mind. If you are also planning to get an app for sorting out your business transactions, let us tell you how to select the right merchant payment application and initiate merchant onboarding easily. Read on!

Understanding Merchant Applications

Leading banks now offer different services for merchants to regulate their financial transactions, including credit and debit. All these services fall under the umbrella term- merchant services. These services are highly beneficial for small and medium-sized enterprises. If used smartly, these SMEs can avoid cash crunch, increase their cash inflow, and keep a record of all the transactions to reduce fraud, theft, and other unauthorized activities.

To become eligible for SME onboarding, you must open a merchant account with a particular bank. The merchant bank account is the primary source where you will receive all the credited amounts. Since a merchant account is a business account, you will have to present your business license as proof.

Once you set up an account and complete the merchant onboarding process, you can instantly start debit and credit transitions smoothly with vendors, consumers, employees, and others at one source, which can be accessed through your mobile phone. However, before we start understanding how to initiate merchant onboarding, let us find out the key features of the merchant payment apps that you must look out for!

How is Merchant Application Beneficial for SMEs?

Cashless payment has become a new normal, and there is no denying the fact that businesses and consumers everyone now prefers online transaction. Especially for small and medium-sized businesses, having a merchant application only enhances their credibility. Here are a few of the key benefits of having a merchant account and application:

  1. Increased sales: Businesses can increase sales by allowing customers to pay with credit and debit cards because customers may be more likely to purchase.
  2. Improved cash flow: With a merchant account, businesses can receive payments more quickly, improving cash flow.
  3. Enhanced security: A merchant account can provide additional security for the business and the customer, as the payment is processed through a secure payment gateway.
  4. Customer convenience: Many customers prefer to pay with credit or debit cards because it is convenient and allows them to track their spending.
  5. Professional image: Accepting credit and debit card payments can give a business a more professional image.

Key Features to Look Out For

Every bank or application provider has features, and you must be vigilant while selecting the app for merchant onboarding. Here are the key features that a merchant app must have-

  1. Easy merchant onboarding process- One of the key problems business owners faces during SME onboarding is the complex onboarding procedure. Look for reliable bank and merchant onboarding that offers paperless KYC and seamless onboarding.
  2. Ability to accept different payment modes- A merchant application must allow the business to accept various modes of payment such as UPI, Tap n Pay, payment via QR code, debit or credit cards and such.
  3. Vendor payment system- One of the key areas where the SME business faces the biggest hurdle is rolling out distributor and vendor payments. Paying via credit helps small businesses build their credit score while increasing the cash inflow during the credit period. Remember to check the credit bill repayment period before initiating the onboarding.
  4. Ability to get a loan- Many service providers also provide easy and quick loans depending upon the requirement. You can also get a low-interest rate on applying for business loans.

Besides these features, check whether they have language options, as many SMEs operate in Hindi and other regional languages. Also, enquire about the application and how you can access all the features.

How to Initiate Merchant Onboarding Process?

To initiate the merchant onboarding process for a payment gateway application, follow these steps:

  1. Research different payment gateway options and select a provider that meets your business's needs.
  2. Sign up for the merchant account with the chosen payment gateway provider if you do not have one. This typically involves completing an online application and providing documentation such as a government-issued ID and proof of business.
  3. Set up the payment gateway application. This typically involves integrating the payment gateway with your business's website or point-of-sale system. The payment gateway provider should provide instructions on how to do this.
  4. Test the payment gateway to ensure it is working correctly.
  5. Begin accepting payments through the payment gateway.
  6. It is worth noting that the onboarding process may vary depending on the payment gateway provider you choose. In addition, some providers may have additional requirements or steps in the onboarding process.


Every business needs a merchant account and application for seamless financial transactions for keeping track and hassle-free accounting. If you are also looking for an application and provider that you can rely upon, you can pick HDFC Bank's SmartHub Vyapar App. The application offers smart features such as instant merchant onboarding, accepting payments from different modes such as SMS Pay, QR, debit or credit cards and UPI, distributor and vendor payment system, GST payment gateway, banking services, and instant business loans. So, what are you waiting for? Head to HDFC Bank's official website today and download the app now!

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