UPI was no less than a wonder in itself. It has witnessed such tremendous growth in a short time! But it does not solve the problem most Indians face: The problem of forgetting! Even some of you may face the problem. But don’t worry. We’ve got you covered. UPI Autopay takes the ease of transaction to the next level and solves this problem.
Let’s deep dive and explore this fantastic innovation.
What is UPI Autopay?
Unveiled in the Global Fintech Festival of 2020, UPI Autopay is the feature that allows the customer to enable e-mandate without UPI PIN. Sounds technical, right? In simple words, it is like a UPI transaction. But here’s a twist. You don’t have to enter the PIN again and again. Just enable this feature, and the app will transact on your behalf automatically.
It is helpful in recurring payments such as utility bills, EMI payments, mutual funds, and many more. Using this feature, you don’t have to worry about due dates anymore. The app will take care of it. It helps you to save your time (even a moment) and avoid late fees and other charges.
UPI Autopay also improves your credit score, as you can pay the EMI before the due date. It also makes you disciplined about investing.
Merchants also benefit from UPI AutoPay. They can enable the feature to pay their suppliers. It increases the creditworthiness of the company.
How does UPI Autopay work?
Using the UPI Autopay software is a child’s play. After all, children are considered the most tech-savvy of all.
Firstly, you have to identify a recurring payments service provider that supports the feature. And you have to register on that platform. Then, select the option to create an e-mandate, i.e., through UPI ID, QR Code, or other modes.
Afterward, open the app where you have created a UPI. You have to verify the e-mandate request. Also, select the bank from where you want your funds to deduct and enter the UPI PIN.
That’s it. Your UPI Autopay is good to go. Now, the linked bank account will get debited automatically. And you are free from the hassle of manual payment.
Why Use UPI Autopay?
As mentioned above, UPI Autopay offers various benefits to customers and merchants. Here are some more of the benefits that it has:
Real-Time Mandate Registration
In other modes, you have to wait a lot to register your mandate. It took as long as two weeks in some cases. But that is not the case with UPI Autopay. It enables you to set up a mandate in real-time. So, it is activated the moment you authenticate it.
Ease of Transaction
Earlier, subscription-based apps like Netflix and Amazon Prime depended on credit cards for recurring transactions. But many of the customers won’t have credit cards. So, the feature remained underutilized.
With the launch of UPI Autopay, the customers can set up recurring payments via UPI as well. So, the company will receive the revenue more efficiently. And it will help to capture new market segments.
Earlier, the customer had to pay penalties for delays in payments. But autopay feature through UPI will ensure that your payments are made timely. So, you don’t have to pay late charges or penalties.
Better Success Rates
Due to technological advancements, the transaction success rate has increased significantly. But it is not 100% yet. With UPI Autopay, the success rate will improve further due to no chance of a failed transaction.
Also, you will receive a notification 24 hours before debit of the transaction. So, you can ensure that sufficient balance is available before the transaction takes place.
Complete Visibility and Flexibility
You can pause or cancel a mandate anytime you want. It also notifies the merchants about the actions the customer makes. So, there is complete visibility of activities. It will also reduce chargebacks. It also enables the customer to see the transaction history of the past mandates.
The Other Side
Nobody is 100% perfect. UPI Autopay is no different. Like a coin has two sides, it has its disadvantages as well:
When you use this feature, there is always a risk of bouncing payments due to insufficient funds in your bank account. The app may send a pre-debit notification. But what if you were too engrossed to pay heed to it?
That is why there is a possibility of bouncing. It may cost you a fine. In extreme cases, it may lead to legal action against you. So, ensure that sufficient funds are available to meet the transaction cost and the minimum balance limit.
Imagine you are using it to pay the utility bills. What will happen if you enter the incorrect details. The payment will get credited against the account of someone else. You may never notice until you verify the particulars, as payment will be automatic.
The biggest hurdle in UPI Autopay is that of the transaction limit. At present, the transaction limit is just Rs 2000. If the payment exceeds the limit, you have to enter the PIN to execute it.
Although it gives you protection from the above demerits, it defeats the entire purpose of the feature. It will be great if we could change the transaction limit as per our choice.
List of Live Banks and Apps
UPI apps like BHIM and Paytm support the feature. More than 25 banks at present are live on UPI Autopay. They include reputed banks like SBI, HDFC Bank, ICICI Bank, and many more. You can read the complete list of live banks for UPI Autopay on NPCI’s website.
What’s more, several aggregators are live as well. They include Razorpay, PayU, BillDesk, etc. So, you can see how popular it has become.
UPI Autopay is an upgraded version of UPI. People even call it UPI 2.0! It is so because it offers the exciting feature of recurring payment. It has many benefits. The registration process is effortless, which is the icing on the cake.
But it has its demerits as well. You can call it a double-edged sword. So, ensure that you take all the precautions. Else, it may cause more harm than good.
Frequently Asked Questions (FAQs)
- How do I activate my UPI Autopay?
Login to the UPI app. Then, click on the Mandate section. Here, you have to authenticate the account with your UPI PIN.
- Is AutoPay risky?
Yes, your account may overdraw due to automatic payment. So, there is a risk of paying overdraft fees. That is why you should check the account balance from time to time.
- How do I stop the mandate?
You have to visit the recurring payment provider’s platform. Here, click on the mandate section. You will notice an option to stop AutoPay.
- Is there a fee involved?
No, there is no fee for setting up UPI AutoPay. However, the bank may charge a fee in case of overdraft in your bank account.
- What happens if I pay before AutoPay?
If you pay the entire amount before the due date, AutoPay won’t process the transaction for that billing cycle. If you pay the amount partially, the transaction will get processed with the balance amount.