What is UPI AutoPay?2 min read
The National Payment Corporation of India (NPCI) launched UPI AutoPay on 22nd July 2020 for recurring payments using the UPI trail. This feature was introduced for the convenience of the buyers. The users can now set automatic monthly payments for recurring use cases including stock SIP, subscription charges, auto ledger update, mutual fund investments. The autopay allows users to make recurring transactions automatically up to Rs. 15,000 through UPI apps and upto Rs. 1 lacs via authorisation on the due date.
How Does UPI AutoPay Work?
This option allows the users to create, modify, approve, revoke or pause the auto-debit mandate. To use these features, the users need to provide a one-time approval to the merchants for whom they want to automate payments on the platform. Let’s take a look at the steps involved in using UPI AutoPay.
- The user has to go to Bank account section on Paytm Money.
- The customers will have to choose a bank account and the amount, upto which they want the money to be debited using Autopay feature.
- The amount should be entered carefully keeping future requirements in mind, as it might be possible that as of now the user wants to setup an SIP for 5k only, but he wants to increase it by 10% every year, so Autopay amount should atleast more than 5k inorder to make ensure it can used for near future as well.
- Customer will have to choose the UPI app or enter the UPI id.
- The customers will have to approve a transaction via a UPI PIN. ( This is a one-time activity for authenticating a transaction
- Recurring payments are deducted in a completely automated manner not requiring any further actions from the customers
- The customers have the flexibility to revoke or pause the mandates at any point in time via the app
- The mandate will set for recurring payments of weekly, monthly, quarterly, half-yearly, yearly or as-presented frequency. (As-presented frequency helps the user to use autopay more effectively incase it wants to use it for multiple dates and purposes)
Step by Step Process to Enable UPI Autopay Feature
Step 1– Login into the app
Step 2- Click on the Account tab and go to the “Autopay” section.
Step 3– Continue by setting up your Autopay
Step 4– Select the bank account and continue
Step 5 – Choose the Autopay limit and Click on the UPI option. You will be redirected to the payment selection page
Step 6 – Select the UPI app (Paytm) or enter the UPI id.
Step 7 – Open the UPI app and enter the UPI PIN
Step 8 – Enter the UPI PIN and complete the AutoPay registration