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Third-Party Apps Go On UPI Autopay Mode


Since its delayed entry with big merchants like UPI Autope Services, Netflix, and Hotstar last year, the National Payments Corporation of India (NPCI) has quietly gained momentum. PhonePay and Google Pay, two Unified Payments Interface (UPI) apps, are in varying phases of implementation and testing.

The standing instructions, which will take effect next month, will speed up build-up transactions beyond the RBI's card-based transaction limits.

Users can use UPI apps to make frequent transactions worth less than Rs 5,000 with Autopay. The majority of this is now done through more complex card-based orders with higher settlement costs. Loan repayments, rent payments, education fees, and subscriptions are all examples of possible autopay applications. Moreover there are already about two million monthly orders that are twice as what NPCI is doing are registered on UPI Autope.

About 100 more online merchants in categories like streaming, financial services, asset management, news media, and education are said to be in various phases of testing before going live.

The surge is attributed to RBI restrictions that tighten recurring payments via debit and credit cards, according to experts

Recurring command solutions are gaining traction, and Netflix and Hotstar are testing direct launch options. To manage massive payments, businesses and financial institutions use NACH, or the National Automated Clearing House.

Only SBI, HDFC Bank, ICICI Bank, and Paytm Payments Bank were processing UPI apps when it was formally introduced in July 2020. However, rumor has it that PhonePay, India's main UPI app, went live in June alone, while Google Pay, India's second-largest UPI app, has yet to do so.

It’s said that consumers and businesses alike choose UPI as a digital payment option. We are working with players throughout the whole ecosystem, including banks, merchants, and others, to enable end-to-end for UPI and Google Pay customers with the UPI Autopay functionality.

Currently, PhonePay and Paytm, two of the top three UPI apps, are coming to the platform, along with more merchants.

AutoPay, which allows small businesses to enter into a personalized debit agreement with a one-time consumer, is likely to be a gamechanger for small firms that collect monthly fees. Since UPI's mobile-friendly design, merchants may easily send pre-debit notifications to clients for these transactions.

The surge is attributed to RBI restrictions that tighten recurring payments via debit and credit cards, according to experts. Each month, banks must re-engineer the flow of transactions by introducing new authentication components like pre-debit instructions to clients.

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