What is UPI AutoPay?
UPI AutoPay is a feature that allows customers to do recurring payments using any UPI application. Customers can now enable e-mandate for recurring payments, such as mobile bills, electricity bills, EMI payments, entertainment/OTT subscriptions, insurance, mutual funds, among others.
Until recently, you as a customer could only use credit cards to make recurring payments. While you could use debit cards earlier, RBI recently put that facility on hold due to security issues & fraud cases. The auto-debit feature by UPI will empower customers to do away with payment authentication time & again.
In the realm of small business banking, Open is the first to roll out UPI AutoPay feature to its users. Recurring payments turned out to be the biggest pain point for small businesses due to continuous lockdowns that happened due to the spread of COVID. Merchants had a tough time collecting subscriptions due to social distancing and movement restrictions. Enabling this feature will help small businesses automate their payment collections so that they can stay safe & focus on their business.
UPI AutoPay helps businesses as they can generate mandate instantly and send it to customers for authorization. Once the customer approves it, a fixed amount gets deducted automatically on the authorized date