In January 2020, the RBI extended the recurring payments feature to UPI. Since then, UPI AutoPay has been one of the most awaited features for many small businesses in India. Till now, that is. We circle back to this later, but let’s set the context first.
Recurring payments are nothing but the subscriptions that you as a business or service provider collect from your customers on a timely basis (daily/ weekly/ monthly or yearly). This can be monthly school fees, gym membership fees, insurance premiums, SAAS & OTT subscriptions, EMI payments, etc.
From the day the first transaction was initiated, UPI transaction volume has grown by leaps and bounds. Having recorded close to 2 billion transactions in October 2020, NPCI is about to mark the 2X year-on-year growth for UPI payments. After seeing the rapid rise in UPI adoption in such a short time period, NPCI announced UPI AutoPay feature during the Global FinTech Fest 2020. It is widely accepted as the best method to collect recurring payments as it provides a much better user experience & transparency to the customers.
What is UPI AutoPay?
UPI AutoPay is a feature that allows customers to do recurring payments using any UPI application. Customers can now enable e-mandate for recurring payments, such as mobile bills, electricity bills, EMI payments, entertainment/OTT subscriptions, insurance, and mutual funds, among others.
Until recently, you as a customer could only use credit cards to make recurring payments. While you could use debit cards earlier, RBI recently put that facility on hold due to security issues & fraud cases. The auto-debit feature by UPI will empower customers to do away with payment authentication time & again.
In the realm of small business banking, Open is the first to roll out UPI AutoPay feature to its users. Recurring payments turned out to be the biggest pain point for small businesses due to continuous lockdowns that happened due to the spread of COVID. Merchants had a tough time collecting subscriptions due to social distancing and movement restrictions. Enabling this feature will help small businesses automate their payment collections so that they can stay safe & focus on their business.
UPI AutoPay helps businesses as they can generate a mandate instantly and send it to customers for authorization. Once the customer approves it, a fixed amount gets deducted automatically on the authorized date.
Benefits of UPI AutoPay:
UPI AutoPay will empower users by providing them with a comfortable and secure way of making recurring payments. Here are some main benefits of this feature:
- Recurring payments get activated with a one-time authorization
- Real-time mandate confirmation
- Grow your customer base
- Lower chargebacks due to complete transparency
- Better success rates
- Timely payments
Where you can use UPI AutoPay?
With this new facility of UPI AutoPay, customers can use UPI applications for automating recurring payments such as subscriptions, fee collections, collecting donations, etc. If you’re a business owner, you can now set up customized plans like:
- SAAS Subscriptions Fees
- School Fees & Gym Membership Fees
- Getting donations from NGO
- Premium collections for mutual funds & insurance
- EMI collections for e-commerce companies
To know more about UPI AutoPay, click here.
Recurring Payments Industry 2021An erudite analysis of global Recurring Payments Industry has been recently added by Absolute Markets Insights to its comprehensive repository.
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An accurate data of several market aspects such as type, size, application, and end user are included in the report for providing extensive business knowledge to readers.
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The report thus helps companies to gauge the threats and challenges faced by businesses.Access Full Report Details and Order this Premium Report @ https://www.absolutemarketsinsights.com/reports/Recurring-Payments-Market--2020-%E2%80%93-2028-804Major Key Players:The major players operating in the market include Adelante, Adyen, Aria Systems, Inc., CHARGEBEE INC., Clover Network, Inc., Elavon Financial Services DAC, Nuvei, Square, Inc., Stripe, Vindicia, Inc., Visa (CyberSource), Worldline, Zoho Corporation Pvt.
Ltd., ARVATO INFOSCORE GMBH and other market participants.Key findings of the report:The solutions segment will have a dominant position in the market, streaming providers are the major end users of these solutions.
In this guide, you come to know which we describe step by step procedure for the set up recurring payment or transactions like routine expenses and also make the maximum of recurring templates in QuickBooks Desktop.Read More: https://www.smbaccountants.com/how-to-set-up-recurring-payments-in-quickbooks-desktop/
