The introduction of UPI Automated payment services has been a game changer in the dynamics of the digital economy. These services facilitate ease of transactions, providing various merits to the users. Once autopay is set up, you need not have to worry about paying several creditors and service providers every month. Instead, payments are taken out of your selected bank account effortlessly. All you need to do is ensure you have adequate funds in your account to pay your bills when they are due.
What is UPI Autopay?
UPI Autopay, a unique feature that allows users to program automated monthly payments for a predetermined amount, was launched with the crucial support of the National Payment Corporation of India (NPCI). This service, which can be used for utilities, internet-based subscriptions, and bill payments, enables users to link their UPI-linked bank accounts and make automatic payments, thereby streamlining business cash flow management.
The NPCI launched UPI AutoPay as an immediate response to the sequential rise in demand for monthly billed subscription-based payments in India post the COVID-19 era. This trend was influenced by the rapid expansion of OTT platforms and the increasing digitalization of services like bill payment and financial investments. The convenience and safety of automated payments have become increasingly important in the current digital landscape, driving the popularity of UPI Autopay.
Benefits of using UPI Autopay:
It is possible to pay for all kinds of bills automatically. Installment loans, vehicle loans, mortgage loans, credit card bills, internet and electric bills, and additional bills fall under this category. Automating these payments directly from a bank account is very simple. Here are some benefits of using UPI autopay:
Hassle-free Transactions
UPI AutoPay facilitates a hassle-free and secure process. Now, users can authorize up to INR 15,000 per transaction using UPI AutoPay and INR 1,00,000 via authorization on the due date. Hence, it is another step in strengthening confidence in cashless and digital payments.
Customers can breathe a sigh of relief with UPI Autopay, as it automates the recurring payment process and aligns with their tech-savvy lifestyle—no more juggling with paper records or tangible documentation. With just one smartphone, you can accomplish anything. This mode offers customers the convenience they crave, making their lives easier and more manageable.
Easy Application
Setting up UPI Autopay is straightforward. Users can automate payments such as electricity bills, OTT subscriptions, and gas connections directly from their existing UPI-activated account. The process involves:
- Selecting the ‘AutoPay’ option in their UPI app.
- Choosing the service provider.
- Setting the payment amount and date.
- Authorizing the transaction.
This can be done in a few simple steps, making it easy for individuals and businesses to manage their cash flow.
Wide Payment Range
UPI Users can set recurring payment limits between Re.1 and Rs. 1,00,000. This range easily supports monthly transactions, eliminates manual work, and helps expand the scope of payments.
Quick, Secure, and Paperless
UPI AutoPay facilitates an easy and safe way to initiate recurring payments online. The UPI platform is highly secure, using two-factor verification and encryption to protect end users’ financial and private information. This removes the need for paperwork or documentation, providing a safe and paperless payment experience.
UPI AutoPay enhances the speed and ease of transactions by promoting digital and cashless payment methods.
Automated payments can benefit users by reducing the possibility of fines or penalties for late payments and assuring payment is on time. This functionality is essential for businesses.
Flexible features
With UPI Autopay, users have complete control and flexibility over their recurring payments, putting them in the driver’s seat of their finances. They can change, halt, or cancel the payment plan anytime, empowering businesses to manage their money as they see fit.
Businesses can schedule regular payments via UPI Automatic payments, an integrated Unified Payments Interface (UPI) feature. This might be a handy tool for enhancing liquidity control.
Here’s how UPI Autopay can benefit businesses:
It helps budget and forecast by providing a predictable cash outflow. Knowing when and how much will be deducted automatically helps businesses utilize resources more wisely and arrange their budgets more precisely.
Automated payment predetermines the expenses to be incurred, allowing the scope of predictability. Businesses can easily forecast and budget the estimated cash flow and plan fund allocation effectively. In addition to guaranteeing on-time payments, careful preparation also reduces late penalties associated with missed payments.
The autopay facility helps enterprises track all recurring transactions on a single platform, ensuring no payment is missed. In addition, it keeps track of due dates and makes it easier for consumers and companies to modify or stop payments at any time. This results in transparency and efficiency in operations and provides a sense of reassurance about their financial control.
More than 6 million UPI AutoPay mandates were reported by Corporation of India licensed banks, a 32% increase from November 2021’s 4.55 million mandates.
A UPI mandate is a user’s request to a bank or other financial institution to permit recurrent payments from their bank account. It enables customers to automatically pay a predetermined amount regularly, eliminating the requirement for human assistance on every single transaction. This allows users to generate, modify, and approve instructions. They can stop or pause auto-debit mandates based on their current situation. Understanding the UPI mandate is crucial for businesses and individuals using UPI Autopay.
Businesses are required to obtain customers’ consent to initiate automation. This process involves the customer providing the start date, name, and duration details. For instance, customers can initiate the recurring payment service for an OTT subscription by filling out the form, which includes details about the plan name, and then approving the transaction using their UPI pin. This ensures that businesses are operating within legal and ethical boundaries.
Conclusion
Life has become more accessible and efficient by introducing safe, innovative technologies like auto payments. The UPI Autopay feature is a crucial solution for businesses wishing to develop a competitive edge in a crowded market. Its advantages, which include better cash flow management, less work for the administrative staff, and increased financial control, make it an important tool for companies of all kinds. Utilizing such effective payment solutions will be essential for preserving financial stability and encouraging sustainable growth as companies keep pace with a changing economic landscape.
