Now Customers Can Automate Recurring Payments Through UPI
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Fintech startup Razorpay in partnership with National Payments Council of India (NPCI) has launched support of UPI AutoPay for its business partners at the virtual Global Fintech Fest.
The AutoPay feature will allow customers to automate recurring payments, such as utilities, bills, insurance premiums, DTH recharge and phone recharge, among others. Until now, auto payments were available only for transactions carried through debit cards, credit cards and prepaid payments instruments, like mobile wallets.
Now with this offering the company will enable its partner businesses across Digital Content Platforms (OTT), Lifestyle Subscription platforms, Insurance, Education and other sectors, experience the huge potential of UPI AutoPay by exploring new revenue models and serving a wider audience, a company statement read.
“UPI Auto Pay will be the next tipping point in digital payment innovation as consumers can easily set up recurring payments using their UPI Apps. Indian online businesses have been waiting for this feature for a long time as this will help them smartly collect recurring payments without any risk. The payment process is really simple, without the user having to worry about several layers of authorisation, still providing a high level of security,” Harshil Mathur, CEO and Co-Founder, Razorpay.
Since its launch in 2016, UPI as a payment method has seen phenomenal growth, which has only increased during Covid-19 induced lockdowns. UPI as a mode of payment grew by 43 per cent between 3 June and 2 July, as per a report by Razorpay titled ‘101 Days of Covid-19 Era: Impact On Digital Payments’.
Customers can create a mandate through their UPI ID for payments of up to INR 2,000, above which they will be asked their UPI PIN to complete the transaction. Consumers will have the option to view, suspend, or revoke a digital mandate via their UPI app or merchant website anytime they want. Before every transaction, pre-debit notification will be sent to consumers 24 hours prior to the payment, allowing customers to pay, pause or cancel the e-mandate.
Furlenco, Times Prime, PolicyBazaar and Testbook are some of the first companies to be integrated with Razorpay for UPI recurring payments feature.