Explain UPI Autopay and How it Works
Today, UPI is the most used payment method in India. The reason behind this is how UPI works and makes life simple. It offers incredible ease and convenience in transferring money by scanning a UPI QR code or selecting a mobile number. You no longer need to fret about whether you carry sufficient cash or exact change. Moreover, it’s a fantastic way to make contactless payments.
The National Payment Corporation of India also launched the UPI Autopay on July 22nd, 2020. The autopay feature has played a significant role in making life easier. Even UPI users can now automate recurring expenses such as bill payments, loan repayments, utility recharges, mutual fund investments, grocery purchases, content subscriptions, housing society payments, etc.
UPI autopay allows users to pay recurring expenditures of up to Rs 5000 through UPI apps. Thus, the amount to be paid will be deducted automatically from the linked bank account on a fixed date each month.
The rapid digitization that has taken place worldwide in the recent past makes a strong use case for UPI payments. The growing number of people subscribing to OTT platforms also needs a simple solution to make monthly payments. Apart from the consumers, it has also greatly aided merchants in receiving their payments on time.
How Does UPI Autopay Work?
Most UPI applications have provided their users with the mandate option to enable the autopay feature. Users can create, approve, pause, modify, or revoke this mandate to auto-debit from their linked account.
The user needs to provide the merchant with a one-time approval by scanning a UPI QR code. By doing so, they create a mandate for the platform to automate payments. Other details like the start date of the subscription, the merchant’s name, and the frequency of debits are also required.
How UPI Autopay Works:
You will need to choose a subscription plan. After that, you need to authenticate the transaction by entering your UPI pin. This authentication only needs to be done once. Following this, recurring payments will be automatically deducted without any manual intervention.
You can always pause or revoke any of the mandates at any time through the app. It gives you the flexibility to set mandates for payments recurring at various frequencies, such as weekly, monthly, and so on.
The Benefits of Using UPI AutoPay:
Apart from the safety and convenience that UPI autopay offers its users, there are some additional benefits:
● You can easily automate payments through any UPI autopay-enabled app from an existing UPI account.
● Automating bill payments helps avoid late payment penalties.
● Payments made on time help improve your credit score.
● It frees you from the mundane and repetitive task of bill payments.
● You can even use it to pay your monthly financial service EMIs, e.g., loans, mutual funds, insurance, etc.
● Users can set up recurring payments ranging from Rs. 1 to Rs. 5000. For amounts larger than Rs 5000, you need to enter your UPI PIN.
● It offers a secure and straightforward method of initiating recurring payments.
● You do not need to do any paperwork or documentation while setting up a mandate.
● It enables cashless and digital payments.
● It allows you to modify/pause/revoke the mandate whenever you need to do so.
By understanding how UPI works, you must have surely realized how it makes your life more straightforward and hassle-free. Many of the goods, services, and content that we consume have simplified their payment gateway charges through fixed recurring dues.
Automating the payment of these charges through UPI autopay leaves you free to do more important things. Even setting up an e-mandate can be done quickly by scanning the UPI QR code. In this way, UPI autopay benefits both the customers and the merchants in making and receiving payments without any trouble.