UPI Payments for Global Live Chat, Social, and Streaming Apps: How to Monetize in India Without a Local Entity
Published on: Fri 19-Sep-2025 01:44 PM
India is home to one of the fastest-growing digital economies in the world, fueled by smartphone adoption, affordable data, and one of the most advanced payment infrastructures—Unified Payments Interface (UPI).
For global live chat platforms, social networking apps, and live streaming services, India represents a massive revenue opportunity. From virtual gifting to wallet top-ups and subscriptions, Indian users are willing to pay for digital experiences—provided payments are seamless and trusted.
The challenge? Regulatory compliance, GST requirements, and RBI payment rules. Traditionally, foreign businesses needed to set up a local entity in India before accepting UPI payments.
The solution? A Merchant of Record (MoR) model that enables global apps to accept UPI payments in India and remit funds globally without a local subsidiary.
If you’re new to MoR, check out our earlier article on best compliance support and embedded fintech solutions for online business start-ups.
Why Live Chat, Social, and Streaming Apps See India as a Key Growth Market
Explosive Growth of Live Streaming and Social Apps in India
Over 500M+ active social media users in India (Statista, 2024).
More than 300M OTT & streaming subscribers.
Live streaming is one of the fastest-growing categories, driven by gaming, entertainment, and creator-led platforms.
Consumer Spending Trends on Microtransactions, Gifting, and Subscriptions
Unlike Western markets where large one-time purchases are common, Indian users prefer microtransactions:
Virtual gifts during live chats.
Small wallet top-ups for in-app items.
Affordable subscriptions (as low as $1–$2/month).
This creates high-frequency, small-ticket revenues, ideal for apps with large user bases.
Why India is Attractive for Foreign App Developers
Young population: 65% under 35.
Low data costs, making streaming/social apps accessible.
Digital trust in UPI, which has overtaken cards and wallets.
For global apps, India is too big to ignore.
Understanding UPI: The Backbone of Digital Payments in India
What is UPI and Why It Dominates Payments in India
UPI, developed by the National Payments Corporation of India (NPCI), is a real-time payment system enabling instant bank-to-bank transfers.
Transactions crossed 11 billion monthly in 2025 (NPCI data).
UPI adoption is higher than debit/credit cards combined.
Learn more from the official NPCI UPI overview.
How Indian Users Prefer UPI Over Cards and Wallets
90% of urban smartphone users now rely on UPI.
UPI is free, instant, and secure, making it the default choice.
UPI Use Cases for Live Apps
Gifting creators instantly.
Wallet top-ups for microtransactions.
Recurring subscriptions for premium features.
Without UPI, global apps will struggle to scale monetization in India.
Challenges for Global Apps Accepting Payments in India
Regulatory Hurdles (RBI, KYC, AML)
The Reserve Bank of India (RBI) requires apps to comply with:
KYC (Know Your Customer).
AML (Anti-Money Laundering) guidelines.
GST and Tax Compliance
Digital services sold to Indian users must include 18% GST. Non-compliance can result in penalties and payment freezes.
Local Entity Requirement
Traditionally, foreign apps needed to:
Incorporate a local subsidiary.
Appoint local compliance officers.
Open local bank accounts for settlements.
This process takes months and high investment, slowing down expansion.
How Merchant of Record (MoR) Simplifies UPI Payments for Global Apps
MoR Explained in Simple Terms
A Merchant of Record (MoR) acts as the legal seller of record on your behalf.
Handles billing, invoicing, and tax filings.
Ensures compliance with Indian laws.
Allows global remittance of revenues.
How MoR Enables Entity-Free Entry Into India
With MoR (like Transact Bridge):
No need for a local Indian subsidiary.
Accept UPI payments from day one.
Stay compliant with RBI & GST rules.
Compliance, Invoicing, and Remittance Made Easy
Files GST returns for your transactions.
Issues local GST-compliant invoices.
Handles currency conversion & global payouts.
See how our MoR solutions simplify expansion.
Benefits of Using MoR for Live Chat, Social, and Streaming Apps
No licenses required (MoR already has payment aggregator approvals).
Faster launch → go live in weeks instead of months.
Lower costs → no legal, HR, or compliance overhead in India.
Fraud protection and chargeback handling.
Full tax compliance → avoiding penalties.
Monetization Models for Entertainment and Social Apps in India
Gifting & Tipping → Creators receive instant support via UPI.
Subscriptions → Recurring billing via UPI AutoPay.
Wallet Top-ups → Users can recharge wallets instantly.
Case Study: A Global Streaming App Scaling in India with MoR
A European live streaming app wanted UPI integration but lacked an Indian entity.
With Transact Bridge’s MoR, they:
Went live in 4 weeks.
Accepted UPI & wallet payments.
Stayed fully GST compliant.
Results:
30% increase in active Indian users.
45% revenue growth from gifting and microtransactions.
Why Transact Bridge is the Ideal MoR Partner
Specialist in UPI payments for high-volume apps.
Deep compliance expertise (RBI, GST, remittance).
Proven track record with digital platforms across industries.
Learn more about our UPI payment solutions.
FAQs on UPI and MoR for Live Chat & Streaming Apps
Q1: Can foreign live streaming apps accept UPI without a local entity?
Yes—through a Merchant of Record (MoR) like Transact Bridge.
Q2: Who files GST when I use MoR?
The MoR files GST and issues local invoices.
Q3: Is UPI more popular than cards?
Absolutely—UPI dominates India’s payment landscape (NPCI data).
Q4: How quickly can I start accepting UPI?
With MoR, typically within 2–4 weeks.
Q5: What’s the main benefit of MoR?
Compliance and speed—no need to set up a local Indian entity.
Conclusion: Unlocking India’s Market with UPI and MoR
For global live chat, social, and streaming apps, India offers a huge growth opportunity. But without UPI and compliance, scaling is impossible.
With a Merchant of Record (MoR) solution, apps can:
Accept UPI payments instantly.
Stay compliant with RBI & GST.
Monetize via gifting, subscriptions, and wallets.
Remit revenue abroad seamless
At Transact Bridge, we help global apps unlock India’s potential—without the complexity of local setup.
