Everything You Should Know About UPI Autopay

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UPI Autopay

Recurring payments for bills, subscriptions, recharge, premium payments, etc., are very common these days. We now also have features by which the payments get done automatically through e-mandate. However, this feature had been limited only to credit cards. People who do not have a credit card or for some reason do not wish to use their credit card for recurring payments are not the beneficiaries of this service. However, with the introduction of UPI autopay, everyone can now enjoy the benefits of autopay by just having a UPI application on their phone.

What is UPI Autopay

UPI Autopay, as the name suggests, is a feature by which customers can e-mandate recurring payments without the need to enter the UPI PIN every time. Users need to authorize the e-mandate once, and every recurring payment is made automatically through the linked bank account on the authorized date. This comes in very handy for merchants who offer services on a weekly/monthly/yearly subscription basis, or service providers like telecom operators, electricity providers, etc.

UPI Autopay helps both merchants and customers equally to enjoy the automatic payment feature.

How Does UPI Autopay Work?

UPI Autopay work in four simple steps:

  1. Any merchant who wants to provide UPI Autopay features to its customers has to first reach a payment service provider that supports UPI Autopay.
  2. The merchant then can provide its users the option to e-mandate payments through any of the supported UPI apps.
  3. The customer has to go to the e-mandate section on the UPI app (based on the UPI id provided by the customer), review and authorize the mandate and enable the same after entering the UPI PIN.
  4. Once the e-mandate is authorized by the customer, the payment amount gets automatically deducted from the linked bank account and transferred to the merchant.

Benefits of UPI Autopay

UPI Autopay is extremely beneficial for the merchants who offer subscription-based services to their customers.

1. Saves Time

The first and foremost benefit of UPI Autopay is that it saves a lot of time and resources for merchants. Earlier, the merchant had to remind the customers to make the payment on time in order to continue the service. Most customers, due to their hectic life schedule, fail to notice the due payment and end up losing the subscription. The real loss is suffered by the merchant, who after losing the customer, now has to notify the lost customers to repurchase the subscription plan. However, with UPI Autopay, merchants do not need to worry about the payment. The amount gets deducted on the authorized date automatically and received by the merchant without the need for any human involvement.

2. Gain More Customers

People who do not have a credit card but wish to enjoy the benefits of automatic payment can subscribe to UPI Autopay. This allows merchants to receive automatic payments from those customers as well who either do not have a credit card or do not wish to use their credit card for automatic payments.

3. Focus on Core Business Aspect

No business wants to use time and labour on things that are not part of their business. Managing payment is one such thing. Added to this is the extra effort that goes into resolving a disputed payment. Setting up a UPI autopay service and allowing the customers to enjoy the same eliminates a lot of mundane work and allows the businesses to direct all the time and resources in enhancing the services for their customers.

4. Supported by Most Major Banks

The UPI Autopay feature is supported by most of the major banks in India like HDFC Bank, Axis Bank, ICICI Bank, Bank of Baroda and payments banks as well as Paytm Payments Bank, etc. Hence, customers having their bank accounts in any of these banks can enjoy the UPI Autopay feature conveniently without any hassle.

5. Beneficial for Customers

People these days have a number of running subscriptions and running bills. Keeping track of all these transactions is not possible. UPI Autopay, in this case, frees the customers from having a fret of managing their periodic payments. With just a one-time e-mandate, they can enjoy the services without having the worry to keep reminders for payments. Furthermore, customers usually prefer merchants who offer such an auto-payment feature to their customers.

6. Flexibility

Autopay does not mean that the customer is obliged to pay the authorized amount after approving the e-mandate. He/she can cancel the subscription anytime without going through any formality. Overall, the customer is completely free to approve, modify, and even revoke the e-mandate as per his will. This level of freedom helps in winning customers’ trust and their loyalty in the long run.

So we have seen how UPI Autopay helps both merchants and customers to make and receive payments without any hassle. UPI Autopay has helped a lot of merchants to manage their subscription service efficiently at a minimal cost. The fact that customers are now readily accepting this payment feature proves how good it is and what level of convenience it brings.

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