January 8, 2025 · 11 mins read
Santosh Kumar
Unified Payments Interface (UPI) has revolutionized digital payments in India, providing a seamless, secure, and real-time method of transferring funds across bank accounts. The UPI system (introduced in 2016 by the National Payments Corporation of India NPCI) has been a huge success in peer-to-peer (P2P) and merchant payments. Among the latest developments in the context of the UPI scheme is UPI Autopay, a functionality enabling the electronic automate a repeat payment of services (such as subscriptions or utility bills) or loans.
In this article, we will explore the concept of UPI Autopay, how it works, the benefits it offers, and a detailed guide on how to set it up. We also cover topics dealing with security and subscription management and common questions.
UPI Autopay is a new offering from the National Payments Corporation of India that helps users make recurrent payments automatically via the UPI platform. It has streamlined the management of regular payments, including OTT subscriptions, insurance premiums, loan EMIs, mobile recharges, and electricity, water, and broadband utility bills.
Users can avail of UPI Autopay instead of manually making the payments every month or per due dates. UPI Autopay enables a consumer to mandate payments for any length of time, usually months and even years. UPI Autopay sends payments as per scheduled intervals from the user's bank account without requiring manual intervention at the time of payment.
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UPI Autopay works through a mandate mechanism. The mandate system is used wherein the consumer consents to a service provider for deducting the payment periodically from his linked bank account or UPI ID. The mandate details the amount payable, payment frequency, and the service provider receiving the payment. The following is the step-by-step briefing on how it actually works:
Service Subscription: When a user wants to subscribe to a service that supports UPI Autopay, for example, an OTT streaming service for Netflix or Amazon Prime or other OTT channels, mobile bill payments, or utility bills/services such as electricity, broadband, and water, they will be presented with an option to choose UPI Autopay as the preferred payment method during checkout.
Mandate Creation: To set up a recurring payment scheme, the user generates a mandate. This mandate is a directive indicating the amount to be paid and the frequency (e.g., monthly, quarterly, and so on). ), and the due date. The user must also enter a UPI ID or a bank account from which the amount is to be drawn.
Authorization: Authentication of the mandate requires the user to authenticate using a UPI PIN. It serves as a mandate by the user that he would like to grant the service provider the permission to auto-debit the amount at specified intervals from his bank account. Automatic payment processing: When the mandate is established correctly, the UPI system will automatically debit the amount on the due date and will debit the user's account automatically without any human effort. Once the payment gets completed, there will be notices given to both the UPI application and the provider platform with the statistics of the payments.
Transaction Notifications: After every successful payment, the user will receive a confirmation notification via the UPI app and a notification from the service provider confirming the payment. This provides transparency and a history of automated payments.
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The advent of UPI Autopay has a number of advantages for the providers as well as users. Here are some of the most important advantages:
UPI Autopay provides immense convenience to users. A great number of people have difficulty remembering monthly subscription/electricity/water/gas bills renewal and other payments. UPI Autopay solves this problem by making the whole process automated. After a single configuration, all payments will occur automatically, removing the user's need to worry about missed or interrupted payments.
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UPI Autopay is a tremendous time-saver for people who have a busy day. The process of setting up recurring payments is quick and easy, and users no longer need to manually authorize payments each time. This means that the user can liberate an important part of their time and that the complete and smooth management of all their monthly payments is guaranteed.
Security is one of the main challenges in digital payments. UPI Autopay leverages the same security measures as UPI, including using a unique UPI PIN for authentication. Payment data is encrypted at the time of transmission, and all transactions are logged in real time to identify and prevent fraud. Additionally, the user must explicitly authorize the creation of a mandate, ensuring that no payments are made without their consent.
One of the benefits of applying UPI Autopay is avoiding late fees or services. One delinquency in paying for a subscription service, such as a cell phone bill, insurance premium or health maintenance organization, can result in penalties or even service disconnection. UPI Autopay guarantees timely payments, thereby eliminating the possibility of such problems and also avoiding overpayments.
Taking care of several subscriptions or bills, e.g., subscriptions to OTT, insurance, and utility, can be tedious, especially for consumers with several service subscriptions. Using UPI Autopay, all users' periodic payments are managed in a single point. This entails that they will be able to instantly look up what apps are on subscriptions, change the schedule of fees, or cancel a mandate all right from their UPI app.
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In many cases, users need to maintain separate payment methods (credit cards, debit cards, wallets) for different recurring services. UPI Autopay simplifies this process by allowing payments to be made directly from the linked bank account or UPI ID, eliminating the need for multiple payment methods.
UPI Autopay also offers users flexibility. If you wish to change your payment information or cancel your subscription, you can do so easily through your UPI-enabled app. This provides the user more control over subscriptions and recurring payments.
Setting up of UPI Autopay is a hassle free procedure and can be done via UPI-enabled apps. Following is a step-by-step guide for configuring UPI Autopay for periodic payments:.
For using UPI Autopay, it could be necessary to possess a UPI-enabled mobile application. This can be for example the official UPI app of a bank or a 3rd party UPI app like Google Pay, PhonePe or Paytm. Make sure that the app is updated to the latest version to support UPI Autopay functionality.
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Once you've installed the UPI app, open it and link your bank account or UPI ID to the app. This procedure will involve photo verification of identity and you will be asked to input your bank personal details. Once done, your account will be linked to the app, and you'll be ready to make payments using UPI.
While subscribing to a service (e.g., OTT platform, mobile recharges), you will usually have a choice of payment options. Select UPI Autopay as the preferred way of making recurring payment(s).
Which is the sum to be paid, the schedule (e.g., monthly, quarterly) and the dates when the payment is due to be made. There are services that even have the option of a payment limit.
In order to verify the payment mandate, you will be asked to verify using your UPI PIN. This is an authorization for the process of automatic payment and it is stipulated that no payment can be withdrawn without your consent.
After the UPI Autopay mandate is successfully set up and verified, you will both receive a confirmation notification from your UPI application and the service provider. The recurring payment schedule will now be activated, and payments will be automatically deducted from your account as per the agreed-upon schedule.
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Following the UPI Autopay setup, one may want to change or withdraw some of those recurring payments. Here's how you can manage your UPI Autopay subscriptions:
To view a list of active subscriptions and periodical transactions, open your UPI app and access the "Mandates" section. Here, you can find all the recurring payments you have authorized.
In some instances, UPI apps allow you to change your payment selection (e.g., amount, frequency, or method of payment). If the service provider enables this, the details can be updated from within the UPI app.
If you no longer wish to make a recurring payment, you can cancel the mandate. Access the "Mandates" section, select the corresponding subscription, and click on the "Disable payment" selection. Thereafter, no more charges for that service Will Be Deducted.
Although there is a secure system, it is necessary to adhere to good practices for protecting the payments:.
Use a Strong UPI PIN: Your UPI PIN should be complex and not easily guessable. This will prevent unauthorized access to your payments.
Monitor Your Mandates: Periodically review your active mandates to ensure there are no unauthorized subscriptions.
Keep Your App Updated: Always use the most updated version of your UPI application, as updates can frequently include security fixes.
Verify Subscription Providers: Before installing UPI Autopay, make sure that the service provider is genuine and reliable. Avoid entering your payment details on untrusted platforms.
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UPI Autopay has been a essential feature for everyone who wants to automate their recurring payments and never miss the due date for the especially emis. In this way, UPI Autopay makes it significantly easier to manage subscriptions, EMIs and utility payments by simplifying the payment process and offering extra convenience for everyone.
Be it electricity bills, uninterrupted OTT streaming, or loan EMIs, UPI Autopay has all your solutions in the most secure and efficient manner. All you have to do is follow the easy steps to start availing of the UPI Autopay services and enjoy all the benefits of making automated, on-time payments.
UPI Autopay is supported by a growing number of services, including OTT platforms, utility bills, insurance premiums, and loan EMIs. Nevertheless, not all the services provide this option and thus it is indispensable to reach out to the provider of the service.
You can bar any recurring payment by visiting the "Mandates" of your UPI-enabled app and such that it has the option to cancel the mandate.
Yes, UPI Autopay is encrypted and each transaction is authenticated by your UPI PIN. Your payment information is protected, and transactions are processed under strict monitoring.
User also has the ability to change the payment schedule/amount, depending on the service provider and the UPI application. Check with the provider or app for specific options.
If your bank or wallet account has not sufficient money at the time of a scheduled UPI Autopay transaction, the payment will be unsuccessful. You will probably receive an alert both from the UPI application and from the service provider. It is possible that you may have to manually complete the payment or maintain a credit balance before the time of next attempt.
All UPI Autopay transactions will be displayed in your UPI enabled app transaction history. You will also receive notifications when payments are processed. Furthermore, some UPI applications provide a granular view of what payments or subscriptions are being billed, and therefore can be easily monitored and tracked.
There is no specific number of subscriptions which you can allow to be configured through UPI Autopay. Still, other banks or UPI app could have limits on the aggregate value of recurring payments or number of recurring deductions. Checking your bank or payment provider is advisable if you are worried about the upper limit.
At the moment, there is no "pause" option for UPI Autopay mandates. However, you can cancel or stop a mandate completely and then set it up again when needed. If you're looking to temporarily suspend a payment, contact your service provider to explore other options.
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