National Payment Corporation of India (NPCI) on 22nd July 2020, launched UPI AutoPay for recurring payments using the UPI trail. This facility is a part of UPI 2.0
What is UPI AutoPay?
UPI AutoPay is a feature that allows customers to enable e-mandate using any UPI application without having to enter a PIN for every recurring payment such as EMI payments, insurance, mutual funds, ed-tech courses, utility bills, OTT subscriptions among others.
UPI AutoPay feature benefits both users and merchants as UPI mandates are generated instantly and payments get deducted automatically on the authorized date.
A business can set the mandate for one-time, daily, weekly, fortnightly, monthly, bi-monthly, quarterly, half yearly and yearly recurring payments.
How Does UPI AutoPay Work?
- A merchant that wants to offer recurring payments via UPI AutoPay needs to register with a recurring payments service provider like Cashfree Payments that supports UPI AutoPay.
- Merchant can offer the user the option to create e-mandate through UPI ID, QR scan or Intent.
- On receiving the e mandate authorization request, the user can open a UPI app, go to the mandate section, review the mandate details, select the bank/debit card and enter the UPI PIN to authorize the e mandate.
- Once the user authenticates, the bank account linked with the UPI ID will get auto-debited and the amount will flow to the merchant’s account as per the recurring payments terms.
What is the Limit on UPI Autopay Transaction Value?
E-mandate on bank account and debit cards: Rs. 1 lakh
E-mandate on UPI AutoPay: Upto Rs.15,000 can be set without UPI PIN for every debit
What is On-Demand UPI Autopay?
Now that our concepts on UPI autopay and recurring billing are clear, let’s move on to the next topic.
What are On-Demand UPI subscriptions?
Well, it is an extension of the UPI Autopay service. With On Demand subscriptions, businesses can personalize their recurring billing according to the customer’s requirement.
But how is that different from normal UPI Autopay services?
You, as a merchant, can choose to edit the recurring billing specifications like:
Here’s an example for better understanding.
Let’s say you own a gas agency. Now, the gas utility bill shall vary according to the units consumed.
|Price Per Unit||Gas Units Consumed||Time Period For Recurring Billing||Total Amount|
|Rs. 10/unit||100||28 days||Rs 1000|
|Rs. 10/unit||150||28 days||Rs. 1500|
So, your On-Demand UPI Autopay PSP allows you to charge your user on the basis of their consumption.
For more information on On-Demand UPI Autopay service by Cashfree Payments, click here.
Comparing UPI AutoPay and Other Recurring Payment Methods
Recurring payments in India can be enabled using standing instruction on credit card, e mandate via authentication using net banking, debit card or by enabling e mandate using UPI AutoPay.
Let us compare UPI AutoPay and other recurring payment methods.
Did you know?
The maximum amount for any one transaction with physical mandates is Rs 1,00,00,000 (1 crore or 10 million).
UPI AutoPay feature is not only easier for businesses to implement but is also convenient for users. Using any UPI App, a user can create, approve, modify, pause or revoke auto debit mandates anytime. The UPI AutoPay features also gives the user access to their past mandates for their reference and records.
List of Banks and UPI Apps Live on UPI AutoPay
As of August 2022, 140 banks are live on UPI AutoPay.
Further, BHIM (Bharat Interface for Money) the mobile payment App developed by NPCI is the first UPI based app to support UPI mandate feature.
Introducing UPI AutoPay on Cashfree Subscriptions
We have added UPI AutoPay as authentication mode on our recurring payments platform Cashfree Subscriptions. With this update, Cashfree Subscriptions users can now offer their customers the option to enable recurring payments using the widest range of modes including standing instructions on credit cards, e-mandate based payments via debit cards, net banking and UPI.
Cashfree Payments offers UPI Autopay services with 20+ UPI apps including PhonePe, Google Pay, Paytm, BHIM and Amazon Pay
Setting up Recurring Payments with Cashfree Subscriptions
With Cashfree, you can set up subscriptions and create a great experience for your customers while minimising engineering investment. Cashfree Subscriptions is fast to configure, preview, test and deploy.
Here is how Cashfree Subscriptions works
Check out the integration guide for step-by-step instructions.
Register to get early access for UPI AutoPay
Creating UPI mandate using Cashfree Subscriptions UPI AutoPay is a simple process. Checkout how Cashfree Subscription is the fastest and easiest way to enable recurring payments. [ UPI AutoPay mandate flow on WhatsApp included]
For our existing Cashfree Subscriptions users UPI AutoPay will be directly enabled on merchant accounts. Registrations for early access to UPI AutoPay are open. If you wish to integrate UPI AutoPay on Subscriptions you can register with us here.
As always we would love to hear from you. Have any questions or feedback? Please let us know in the comments section.