How UPI Autopay will help achieve one billion transactions a day in the next 5 years

What is UPI Autopay?

With this new feature introduced under UPI 2.0, customers can now make recurring e-mandates using any UPI application for recurring payments like Mobile Bills, Electricity Bills, EMI Payments, Entertainment / OTT Subscriptions, Insurance, Mutual Funds can enable. NPCI launched UPI Autopay in July 2020.

The huge volume of transactions will get a major boost with the UPI solution now helping to meet a significant demand within merchants.

,UPI Autopay The digital subscription will enable seamless recurring payments like insurance premiums, investments, donations, EMIs, etc., for millions of users in India. Rohit Taneja, Founder and CEO, Decentro said, “There are already over 53 million OTT video subscriptions and this is just the tip of the iceberg.

2 major changes in collecting recurring payments through UPI

On top of this, NPCI recently announced two major changes in collecting recurring payments is i Which removed all the limitations previously faced by traders. Now, the mandate cannot be cancelled/cancelled by the borrower (for lending), and all auto-debits can now be up to 15K without a PIN which widens the use cases and allows more customers to use this facility. Allows selecting options.

“Our partners and customers term this as a huge win for UPI Autopay solutions to enter the market, and we look forward to empowering 1000+ companies in the years to come.” Rohit Taneja said.

Justin M Bharucha, Managing Partner, Bharucha & Partners said that after NPCI expanded UPI overseas as a domestic alternative to SWIFT and RBI allows use of UPI through feature phones and not just smart phones. For this, the target should be 1 billion UPI transactions a day. be attainable.

He further added that the size of the user base will compel global players to integrate with the NPCI UPI system and should help India move away from global payment system dependence – self-reliant while helping India expand its global footprint. A very clear step for

UPI AutoPay is a payment service that helps people to pay their recurring bills automatically on a predetermined date. The service allows users to enable e-mandate for making payments such as their utility bills, EMIs, OTT subscriptions, mutual fund SIP payments and insurance premiums. Before July 2020, such facility was available only through net banking or credit card portal. Exchange.

“And now the customers are happier. They can easily create mandate for their favorite OTT subscription in few steps without any documentation and can be assured of never missing out on their favorite shows. They can use their postpaid mobile You can also create mandates for connections and be assured that their calls will never be interrupted.And most importantly, they can create mandates for their domestic helpers, who must also be UPI users, and be assured that Their assistants are rewarded on time. This facility is not possible in auto mandate created through net banking or credit card portal. No wonder more and more people are adopting UPI autopay and their numbers are increasing rapidly. Gaurav Gunjan, Partner, Chartered Accountants, Gupta Sachdeva & Co. said.

He said that looking at the above scenario, there is no doubt that UPI Autopay will help in achieving one billion daily transactions in the next five years.

UPI services will be free

Government will not charge any fee Charges on UPI Services, Finance Ministry said on Sunday. The Finance Ministry said in a tweet that UPI will be free.

“UPI is a digital public good with immense convenience for the public and productivity benefits for the economy. There is no idea in the government to levy any charges for UPI services. The concerns of the service providers for cost recovery can be met through other means. Has to be done,” the tweet read.

How to set up e-mandate in UPI app to maximize the benefits of using Autopay option

Log in to BHIM UPI app and click on ‘Auto Debit’ option

– Click on ‘Mandate’.

The next step is to manage the mandate. This section allows customers to view their past mandates for their reference and records.

-UPI users can create e-mandate through UPI ID, QR scan or intent.

-Users should select the payment frequency or duration next time.

– Mandate can be set for one time, daily, weekly, fortnightly, monthly, bimonthly, quarterly, half yearly and yearly.

-Next users should add merchant name and select auto debit date and then finally click on ‘Proceed’.

Customers need to authenticate their account through UPI PIN once and later the monthly payment will be automatically debited.

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