UPI has become a popular choice for digital transactions in India. The India Digital Payments Report 2019 revealed that UPI facilitated transactions worth ₹ 18,36,000 crores last year, up 214 percent from 2018. “UPI is perhaps the fastest product to hit 1 billion transactions-a-month in 2019 since its inception in August 2016,” the report said.
Therefore, the NPCI (National Payments Corporation of India) has launched a new AutoPay feature of UPI (Unified Payments Interface) in India to allow recurring online payments.
The feature is the part of UPI 2.0, and the updated version of the instant payment system run by NPCI.
The new feature of UPI will allow customers to set an auto-debit feature on their UPI apps from their connected banks for online transactions up to ₹ 2000.
Under the product, customers will have to execute every mandate with the UPI PIN for recurring payments above ₹ 2000.
In also addition, this new feature of UPI can be used for recurring expenses such as mobile bills, mutual funds (SIP) and loan payments, paying for transit or metro payments, EMI payments, insurance, electricity bills, entertainment, or OTT subscriptions, and many other online transactions.
NPCI said in a statement that “Every UPI app will have a separate ‘mandate’ section through which consumers will be able to provide, modify and even revoke a mandate, and the mandates can be set daily, weekly, monthly, yearly and so forth.”
Praveena Rai, chief operating officer at NPCI said at the launch of the service during the Global Fintech Fest that “UPI AutoPay is a big milestone for the UPI product road map as it allows people to make repeat payments for multiple purposes. Mandates can be set up with daily weekly, monthly or annually, which means it opens up an entire host of use-cases and applications,”
Asbe, CEO, NPCI said that “The UPI AutoPay offering would provide millions of UPI user’s convenience and safety while making recurring payments. This facility will benefit customers and merchants with all new recurring payments experience. We hope to achieve new milestones by expanding UPI’s presence especially in the person-to-merchant (P2M) payment space.”
Nandan Nilekani non-executive chairman and co-founder, Infosys said that “UPI being the one-stop destination for customers’ day-to-day spends, acts as a backbone of digital India. Introducing UPI AutoPay on UPI is a testament of continuous innovation in the digital payments space.”
NPCI has introduced UPI AutoPay for banks like Axis Bank, Bank of Baroda, HDFC Bank, HSBC Bank, ICICI Bank, IDFC Bank, IndusInd Bank, Paytm Payments Bank, AutoPe-Delhi Metro, AutoPe-Dish TV, CAMS Pay, Furlenco, Growfitter, Policy Bazaar, Testbook.com, The Hindu, Times Prime, Paytm, PayU, RazorPay,
NPCI said that “Jio Payments Bank, State Bank of India and YES Bank will soon go live with UPI autopay feature.”