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When Indians want to pay for something, they usually open a UPI app and make the payment within a few seconds.
This shift happened fast and it stuck. Today making payments via UPI has become a habit.
So when businesses started offering subscriptions, UPI Autopay was the natural choice for users. Familiar flow, one-time approval, and the mandate is created.
But there was always catch with UPI Autopay
Autopay Only Worked with Bank Accounts
Until recently, every UPI Autopay mandate debited from a bank account. For many users this worked fine, but it did not serve the credit card users who prefer paying with credit for the rewards, interest-free credit window, and spend-based milestones.
On paper, recurring payments option via SI on cards was always available. However the experience was extremely clunky and the success rates were low- leading to poor adoption.
As a result, credit card users were left with little choice but to manually renew their subscriptions every month.
The Shift: Credit Cards, Credit Lines and PPIs Now Work on UPI Autopay
NPCI has now enabled UPI Autopay across RuPay credit cards, credit lines, and PPIs.
The flow stays the same:
Same apps, same flow.
But the mandate can now draw from a credit card, credit line, or a full-KYC wallet instead of a bank account.
Cashfree Payments is among the first payment gateways to go live with this capability.
What Each Instrument Unlocks
RuPay Credit Cards: For users who prefer credit cards, this is a natural fit. Users can now set up recurring payments without worrying about losing any cashback or rewards on their credit card.
For businesses, this unlocks a high-intent, high-value segment that previously avoided autopay altogether.
Credit Lines: By enabling UPI AutoPay on credit lines issued by banks, it unlocks recurring payments for a large segment of users who don’t own credit cards but have access to formal credit. This helps users maximise the usage of available credit.
PPIs (Wallets): Full-KYC PPIs can now be linked to UPI Autopay, extending recurring payment access to users who prefer prepaid, controlled spending.
What Changes for Merchants
A wider subscribable base. Credit card users, credit line holders, wallet users segments that either avoided autopay or could not access it, are now reachable within the same UPI flow.
More affordability: The option of setting up recurring payments with credit card increases the affordability of the users. Earlier users who were more inclined towards the basic plan because of their account balance issue can now upgrade their payment plan.
More payment choice, better conversion. Giving users the instrument they prefer at the point of mandate creation directly improves conversion.
Better retention over time. Mandates linked to credit cards or credit lines are less prone to failures caused by low bank balances, leading to higher success rates and improved overall retention for merchants.
