UPI has become one of the most common means of payment used widely across the country. Whether it is business transactions or financial trading, it is flexible and suits the needs of all consumers. Last year on 22nd July, the National Payment Corporation of India launched a new feature in UPI: UPI AutoPay.
This UPI feature allows individuals a way to automate all recurring payments which are of a fixed amount. If individuals opt for it, then the specified amount is deducted from their accounts on a particular date. Individuals can avail of it for making payments for utility services, content subscriptions, and bills. Let us now understand the functioning, benefits and future outlook of this feature which has defined and transformed the way payments work.
Working of UPI AutoPay
Most of the UPI applications have offered the option of ‘Mandate’. It allows all users to create, revoke or even pause the automated debit mandate. However, users must provide a one-time approval for the automation process from the merchants on the platform to get access to these features. Below listed are the steps which are involved while using the application.
- Choosing a Subscription Plan
Every user or customer must choose a subscription plan before using the UPI app Autopay application.
- Approval of Transaction Plan
In the second step, the customers have to approve the transaction. However, it is done only once by using a UPI PIN.
- Making Payments
After the approval, all the regular payments are automatically deducted from the customer or user account.
- Pausing or Revoking of Mandates
Payments are flexible while using the UPI Autopay features, and the customers can revoke the payments whenever necessary while using the application. The customers can set mandates at weekly, monthly, half-yearly or even yearly intervals.
Benefits of Using UPI AutoPay
The UPI AutoPay feature makes it convenient for all customers to make recurring payments. Its advantage in different sectors are as below:
- E-Commerce
Merchants can avail of doorstep deliveries and get access to buy now and pay later facilities. Furthermore, modification or revoking is also facilitated while placing orders. Moreover, with cashback UPI applications, users can get instant discounts.
- Education
The customers can set such mandates, and convenient payments can be made for the individual’s education. It also provides different packages that can be chosen as per the user’s requirement.
- Financial Services
To ensure a good credit score, timely payments of EMI’s is very crucial. Using the UPI AutoPay feature, you can make the loan, mutual funds, or even insurance EMI payments without missing the due dates and reminders. Auto payments also help avoid the penalties that arise due to late payments. Moreover, it saves them time and effort in visiting the physical branches and submitting the paperwork.
- Entertainment
Different subscriptions of various OTT platforms can now be made easily and instantly. Mandates can also be done by activating single or even bulk plans. Thus, one can enjoy non-stop entertainment by not missing payment cycles.
Future Outlook of UPI Payments
Digitalisation has helped provide the customer with the best experience in every field, from purchases to payments. Using QR codes the UPI AutoPay feature and application is a step towards promoting digital and cashless India. This also helps consumers ensure a hassle-free and seamless method of making bill payments while significantly reducing the chances of fraud. The limit of recurring payments on transactions is Rs. 5,000. In a country where online payments are increasing significantly every year, the future of UPI payments is the right choice for all users and customers.
