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The way we pay for things today is evolving, and customers are looking for more control and flexibility. Consider a customer booking a hotel who is hesitant about making a large advance payment, or an online shopper who worries about a complicated refund process if they return an item. What about app wallets? They often require customers to preload money that sits idle, earning no interest.
These moments of hesitation don’t just frustrate customers—they quietly erode conversion rates for merchants. At Cashfree Payments, we’ve long believed there’s a smarter way. After UPI Autopay and One-Time Mandates (OTM), we’re proud to introduce the next breakthrough in UPI payments: UPI Reserve Pay by Cashfree Payments.
The Breakthrough: What is UPI Reserve Pay?
UPI Reserve Pay combines the security of blocked funds with the flexibility of multiple debits. It’s like a smarter, safer wallet built directly into UPI.
Here’s how it works with Cashfree Payments:
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- A customer blocks a chosen amount (say, ₹5,000) via a UPI-linked payment mode.
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- The merchant can then debit from this blocked amount multiple times—whether as goods are delivered, services are consumed, or trades are executed.
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- If the full amount isn’t used, the unused balance is automatically released on mandate expiry, or earlier if released by the merchant.
This powerful functionality is available across all major UPI-linked payment modes: Savings Account, Credit Line on UPI, and RuPay Credit Card on UPI.
Why UPI Reserve Pay by Cashfree Payments is a Game-Changer
Today, merchants often have to choose between security and flexibility, and both come with trade-offs.
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- OTM guarantees funds by blocking them upfront, but its one-time use makes it rigid for complex transactions.
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- UPI Autopay allows for recurring debits, but it lacks a fund guarantee at the time of debit, which can lead to failed payments. It also requires a pre-debit notification 24 hours in advance.
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- Wallets give flexibility but require customers to preload money, which locks up their funds and earns no interest.
UPI Reserve Pay solves all three of these problems at once by combining the guaranteed funds of OTM and the flexibility of multiple debits like UPI Autopay, while eliminating the friction associated with wallets.
Unlike a traditional wallet, UPI Reserve Pay ensures customers never have to preload funds. The money remains in their bank account, continuing to earn interest. And if any funds are unused, they are automatically released, removing the friction of a refund. Simply put, UPI Reserve Pay by Cashfree Payments provides all the control of a wallet without any of its friction.
Unlocking New Business Models
UPI Reserve Pay isn’t just a new payment feature—it’s a foundation for new business models and customer experiences.
E-commerce: “Try & Buy” and Pay-on-Delivery
With UPI Reserve Pay by Cashfree Payments, you can offer a seamless “try before you buy” experience. A customer blocks the full amount at checkout. Once they return the items they don’t want, you only debit for the items they keep. The rest is automatically unblocked, eliminating the need for complex refunds and building customer trust.
Travel & Hospitality: Flexible Reservations
At the time of booking, guests can block the estimated booking amount. You can then debit the final charges at checkout. If the customer cancels, the funds are instantly unblocked, providing a worry-free experience.
In-App Wallets: The Frictionless Way
Instead of asking customers to load money into a separate wallet, you can ask them to block funds in their own bank account. Each purchase then debits from the blocked amount, and any unused balance is released automatically. This offers the convenience of a wallet without any of the hassle.
Brokerages & Securities: Simplified Margin Trading
Investors can block a lump sum (e.g., ₹5,00,000) once. Brokers can then debit smaller amounts as trades are executed or shares are allotted. This simplifies the process for investors and ensures seamless, error-free transactions without requiring pre-trade wallet top-ups.
Stop losing high-value sales to UPI ‘Insufficient Funds’ errors. Sign up for Cashfree Payments and offer UPI Reserve to ensure payment success before the customer even checks out.”
What does UPI Reserve Pay by Cashfree Payments unlock for your business?
UPI is already the backbone of digital payments in India, with over 14 billion transactions monthly. OTM and UPI Autopay have already transformed payment collections. UPI Reserve Pay is the next chapter, and at Cashfree Payments, we are proud to be at the forefront.
We are among the first to make UPI Reserve Pay available for all merchants, with easy-to-integrate APIs, SDKs, and ready-to-use industry templates.
For merchants, this is a first-mover opportunity. Early adopters of UPI Autopay defined subscription flows. Now, early adopters of UPI Reserve Pay with Cashfree Payments will define a new era of flexible, trust-led payments across e-commerce, travel, and financial services.
Reserve once, pay flexibly, and let trust flow automatically. Be among the first to offer your customers a smarter way to pay with UPI Reserve Pay by Cashfree Payments.
