Do you remember the days when subscription-based services meant manually paying for things like your newspaper delivery, magazine subscriptions, or even cable TV? You had to remember to make a phone call, or even visit a store to make those payments each month.
And let’s be honest, sometimes we forget to pay simply because life gets busy or we don’t have the right payment method at hand. It wasn’t the most convenient process back then too, and missing a payment could mean missing out on your daily newspaper, a month’s worth of content or late fees.
For subscription-based businesses, it leads to interruptions in service, loss of revenue, and a poor customer experience. In the past, many businesses relied on methods like SI on credit cards for recurring payments. However, these methods were not scalable, often faced high failure rates, and required customers to have credit cards, which have low penetration in India. This made it difficult for many businesses, especially smaller ones, to accept recurring payments smoothly.
This is where UPI began to play a key role. UPI made it easy for users to send and receive money between bank accounts instantly, 24/7, without the need for credit cards or complex processes. It also allowed for bill payments, online shopping, checking balances and transaction history, and even earning cashback and vouchers. Recognizing the growing demand for a solution to handle recurring payments, NPCI introduced UPI AutoPay.
What is UPI AutoPay?
UPI AutoPay enables users to set up automatic, recurring payments through the UPI system. Once authorized, it automatically processes payments for subscriptions, bills, or services such as newspapers, streaming platforms, or utilities on the due date. Users only need to authorize the mandate, and from there, it manages the remaining payments, making it easier to stay on top of recurring payments without the need to manually approve each one.
For instance, consider a customer with a Disney + Hotstar subscription. With UPI AutoPay, once they authorise the first payment through their UPI app, Disney will automatically deduct the subscription fee each month.
By using UPI’s security and simplicity for recurring payments, UPI AutoPay removes the need for customers to worry about missed payments or late fees. It helps businesses collect payments easily, while providing a smooth experience for customers. Here’s more on how it works to understand better:
How Does UPI Autopay Work?
Once you’ve integrated UPI AutoPay on your platform, customers can easily choose it as their payment option for subscriptions or recurring services.
They’ll approve the first payment and set up the mandate in just a few taps on their UPI app.
Payments are then automatically deducted from their account on the scheduled dates no manual follow-ups needed!
You’ll get instant notifications every time a payment is processed, keeping you in the loop.
Manage everything from tracking payments, updating mandates, or handling subscriptions right from your payment gateway dashboard.
Now, let’s explore what you should look for in a feature like UPI AutoPay and how to maximize the benefits of this powerful payment tool.
Features of UPI AutoPay by PhonePe PG
1. Quick Mandate Setup: UPI AutoPay by PhonePe PG allows merchants to create recurring payment mandates instantly, simplifying the subscription setup process, minimising manual effort, and streamlining operations.
2. Better Payment Recovery: With UPI AutoPay by PhonePe PG,businesses can reduce payment failures by customising retry schedules, ranging from hourly to several days. This feature helps improve customer retention and ensures a steady flow of revenue.
3. Flexible Subscription Amounts: Businesses can adjust the variable payment amounts for each subscription cycle, making it easy to offer discounts. This flexibility attracts more customers and promotes long-term subscriptions.
4. Versatile Across Industries: UPI AutoPay is suitable for businesses across various sectors, including NBFCs, digital lenders, streaming platforms, financial services, insurance providers, and utility companies.
5. Customisable Payment Cycles: Merchants can offer customers daily, weekly, monthly, or yearly payment plans with the ability to modify, pause, or cancel them as per their preference. This gives customers more options and makes them more likely to stay subscribed which, over time, adds to consistent revenue generation.
6. Cost-Efficient: UPI AutoPay saves businesses money by automating payments. This reduces processing costs and the need for manual work, helping businesses save time and resources while ensuring timely payments.
Now that you’re familiar with the key features, let’s understand:
Why is UPI AutoPay Important?
It is important to
Improve Revenue Return Rates: With UPI AutoPay, customers don’t miss payments, which means businesses get paid on time, leading to better, predictable, manageable cash flow and higher revenue.
Process Faster & Secure Transactions: Payments are processed quickly, and since it’s all through UPI, it’s safe and keeps your money secure. No need to worry about long waits or potential risks.
Maximize Redemption Success Rate: UPI AutoPay helps businesses minimize losses and increase the chances of getting payments successfully processed.
Leverage Non-revocable Mandate: Vital in the BFSI industry,it prevents customers from canceling recurring loan or EMI payments, reducing the risk of defaults and ensuring timely, consistent payments for businesses.
With the above in mind, it’s also important to understand the benefits UPI AutoPay offers, making payment processing simpler for both businesses and customers.
To illustrate, here’s an example: Jar, a digital savings company, experienced a 15% increase in payment success rates by using PhonePe PG’s UPI AutoPay feature.
For you to achieve the same results and more, here’s how you can easily integrate UPI AutoPay for your business.
How to Set-Up UPI Autopay for Your Business
1. Choose a Payment Gateway
To start, select a Payment Gateway provider that supports AutoPay like PhonePe PG.
2. Create a Merchant Account
Sign up for a merchant account with the selected payment gateway.
Provide necessary business details such as business name, bank account information, and other documents for verification.
Link your business bank account to the gateway account.
3. Integrate UPI AutoPay with Your Platform
Once your merchant account is created, integrate the UPI AutoPay API (provided by the gateway) to enable recurring payments.
Configure payment settings (e.g., frequency, amount) and customize the customer’s payment flow.
4. Generate UPI Payment Details
With the payment gateway create a unique intent, QR code, or payment request for your customers to easily make payments.
You may also generate a UPI QR code for easy access by customers.
5. Set Up the AutoPay Mandate
Request customers to set up autopay.
Specify payment frequency (e.g., weekly, monthly) and fixed amount.
Customers approve the mandate through their UPI app.
Recurring payment setup is triggered once approved.
6. Trigger Pre-Debit Notifications
As a merchant, send pre-debit notifications to customers ahead of each scheduled payment, tailored to your business use case.
These notifications can be delivered via SMS, email, or in-app alerts to ensure customers are informed in advance.
7. Monitor Payments
Track all recurring payments and transactions through the payment gateway’s dashboard.
The payment gateway will handle the collection of funds and the processing of recurring payments automatically.
Once you integrate and start using UPI AutoPay, handling recurring payments becomes a breeze for your business. Whether it’s for utilities, subscription services, education fees, insurance, SIP payments, or trading account recharges, UPI AutoPay takes care of it all. Customers can set it up once, and their payments are made on time, every time, without needing to worry about due dates or missed payments.
Now, why do customers prefer PhonePe for this? PhonePe has become one of the most trusted payment platforms in India, loved for its speed, security, and ease of use. Millions of users rely on PhonePe for their everyday transactions and with UPI AutoPay, they can manage all their recurring payments without a hitch.
With PhonePe Payment Gateway’s UPI AutoPay, your business gets even more. The setup is simple, you can track payments in real-time, and features like pre-debit notifications and retry options reduce failed payments. By adopting UPI AutoPay through PhonePe PG, you’re not just offering a payment solution, you’re providing an efficient, trusted experience that keeps customers happy and helps your business grow.
