Do you remember the first time you made a UPI payment to continue watching your favorite movies and shows on an OTT subscription service? Wasn’t it (significantly)less cumbersome as compared to making repetitive payments with transaction charges through credit/debit cards?
Speaking of less cumbersome things, are you aware that businesses can now set up recurring debits (for their customers) through the UPI app?! Well, say hello to UPI Autopay! Auto-debits for a non-carded customer are now easier than ever before with UPI AutoPay being introduced to enable recurring payments.
Building on the successful foundation laid by Unified Payment Interface (UPI), the National Payment Corporation of India (NCPI) has come out with another innovative payment solution called UPI AutoPay, which is already revolutionizing the entire landscape of digital payments in India.
This comes as a welcome change for Individual users and businesses, as mandates are now generated instantly and payments get deducted automatically on the authorized date. This should not only assist existing businesses to serve a broader audience but also allow them to explore new revenue models by incorporating this feature.
For businesses across the country, payment solutions that allow the formalization of recurring mandates have turned out to be a trendsetter because earlier businesses could not collect monthly subscriptions and other recurring payments for their services.
But now, UPI AutoPay has filled this crater in the payments sector by allowing users to set up mandates via UPI applications for recurring payments, which is, in turn, helping in customer satisfaction and retention from a business point of view.
UPI AutoPay is the fastest-growing payment product in India, with transactions surging 54% in volume since the beginning of 2021 till now. As of December 2021, 284 banks across the country have gone live with UPI.
Furthermore, it has also become recognized as an industry benchmark and has also gained international recognition, with several innovations under it being continuously sand-boxed and experimented with already.
The journey and success of UPI AutoPay
The NPCI rolled out UPI AutoPay in 2020. Though it faced a slow start, UPI AutoPay has now picked up the pace, with over 1.78 million mandates registered with banks that have enabled the feature.
- With UPI AutoPay, users can register a “mandate” through the UPI-enabled bank ID after authenticating the user’s account through the UPI PIN. Users can then review, modify and create recurring auto-debit mandates on their UPI-enabled application
- Real-time confirmation of the mandate registration is given and a pre-debit notification is given to the user 24 hours before the auto-debit
- As the rate of digital payments increased due to lockdowns imposed as a precaution for COVID-19, the scope and demand for UPI has changed for good as well
- From monthly rent, monthly subscriptions to utilities, direct to home services, OTT platforms, and telecom service providers, making payments for all these facets through UPI AutoPay is all about offering flexibility to customers while making the collection of payments a breeze
- UPI AutoPay assures predictable cash flows and growth, as well as opens up new revenue subscription streams for businesses
On the other hand, UPI AutoPay’s focus on consumer comfort and convenience, with the addition of instant and easy access to mandate choices being available to users through a user-friendly interface has made it a game-changer.
The rise and success of PhonePe
A 2021 NPCI report on Digital Payment Adoption in India highlighted that 79% of Indian Households who engage in digital payments do it through major UPI-based applications such as PhonePe, Gpay, and PayTM.
PhonePe enables the highest volume of transactions in India, amounting to over 45.73% of digital payments, making it a pivotal market leader in the payments landscape, and has over 300 million registered users. Earlier this year, this key digital payment application went live with the UPI AutoPay feature in the backend of 2021 and has already bagged over a million mandates since its debut!
PhonePe has been integrated as a payment option at over 17.5 million offline and online business outlets across 500 cities in India. The app crossed the 100 million user mark in June 2018 and also crossed 5 billion transactions in December 2019.
With PhonePe’s decision to enable digital payments for 25 million small vendors, businesses have a chance to gain a wider reach of users from the massive customer base that PhonePe holds. As UPI transactions have seen an uptick ever since the rollout of PhonePe’s AutoPay feature, other UPI giants like GPay and Paytm are also considering implementing this feature.
Scaling up of businesses with UPI AutoPay powered by Razorpay Subscriptions
PhonePe enabling UPI AutoPay is a great prospect for businesses that are willing to offer recurring payments, scale up, and gain steady returns.
Razorpay Subscriptions offers an end-to-end solution for businesses wanting to adopt recurring payments. Businesses can now go live and get access to PhonePe’s users (over 300 million registered users) that can help them acquire more customers easily.
This feature has empowered small and medium-scale enterprises, freelancers, and vendors who collect periodic payments from their users by offering a platform that automates payments and saves up costs for businesses that used to manually follow up on recurring payments.
Razorpay Subscriptions is committed to offering an avenue for large enterprises and over 1.5 million SMEs to achieve transformational growth by creating lifetime value for their customers, acquiring new subscribers, scaling up on recurring revenue, etc.
We have made it more simplified for you to integrate UPI AutoPay so that you can start receiving payments faster. Hence, if you are looking for an efficient solution for UPI AutoPay, Razorpay Subscriptions is the way to go!
More customers, more revenue, and more growth!