upi: UPI AutoPay top of charts in low-ticket recurring payments

UPI AutoPay is the recurring payment mandate run by the National Payments Corporation of India (NPCI) on the UPI payment mode. Consumers usually use the feature to pay for their entertainment, newspaper subscriptions and other small-value recurring payments.

State Bank of India (SBI), HDFC Bank, ICICI Bank, Bank of Baroda and Paytm Payments Bank are the top five remitter banks for such transactions. Together they accounted for 8.1 million transactions in November this year, more than double compared with around 3.9 million a year earlier. Four of the same banks were among the top five last year too. Union Bank of India was at fifth place in 2022, followed by ICICI Bank.

SBI, the country’s largest lender, is the leading player in terms of remitting AutoPay transactions. In November, the bank processed 3.8 million transactions, double the number a year earlier.

Currently, all the major payment applications like Google Pay, PhonePe and Paytm are processing UPI AutoPay payments.

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Overall success rates of these transactions have gone up too. In November last year, SBI reported 91% approval rates for these transactions. For HDFC Bank, the number was around 94%. Currently, most of the major banks in this space report higher than 99% success rates for transactions.

Limit enhancement

In a letter dated December 14, NPCI has asked all banks and fintechs to enhance their limits for AutoPay transactions , in line with the recommendations of the Reserve Bank of India.

The limits for transactions to go through without an additional factor of authentication have been extended to Rs 1 lakh from Rs 15,000.

“As of now mutual fund payments, insurance premium payments and credit card bills are allowed, eventually more categories could get added,” said the founder of a payment startup that offers UPI payments.

Industry insiders pointed out that NPCI wants to bring in larger ticket-size transactions onto UPI and the enhancement of the limit can be a big means to bring such recurring payments. ET wrote on December 1 about how NPCI is encouraging large ticket size transactions on UPI through RuPay credit cards.

Overall till November, UPI has processed 105 billion transactions settling overall Rs 164 lakh crore. Currently, UPI has become a full-stack payment mode, where consumers can use their savings accounts, credit cards, credit line from banks and even prepaid cards. Now with recurring payments, a large chunk of bill payments, loan repayments can also start flowing through the UPI ecosystem.

UPI AutoPay is the recurring payment mandate run by the National Payments Corporation of India (NPCI) on the UPI payment mode. Consumers usually use the feature to pay for their entertainment, newspaper subscriptions and other small-value recurring payments.

State Bank of India (SBI), HDFC Bank, ICICI Bank, Bank of Baroda and Paytm Payments Bank are the top five remitter banks for such transactions. Together they accounted for 8.1 million transactions in November this year, more than double compared with around 3.9 million a year earlier. Four of the same banks were among the top five last year too. Union Bank of India was at fifth place in 2022, followed by ICICI Bank.

ETtech

SBI, the country’s largest lender, is the leading player in terms of remitting AutoPay transactions. In November, the bank processed 3.8 million transactions, double the number a year earlier.

Currently, all the major payment applications like Google Pay, PhonePe and Paytm are processing UPI AutoPay payments.

Discover the stories of your interest

Overall success rates of these transactions have gone up too. In November last year, SBI reported 91% approval rates for these transactions. For HDFC Bank, the number was around 94%. Currently, most of the major banks in this space report higher than 99% success rates for transactions.

Limit enhancement

In a letter dated December 14, NPCI has asked all banks and fintechs to enhance their limits for AutoPay transactions , in line with the recommendations of the Reserve Bank of India.

The limits for transactions to go through without an additional factor of authentication have been extended to Rs 1 lakh from Rs 15,000.

“As of now mutual fund payments, insurance premium payments and credit card bills are allowed, eventually more categories could get added,” said the founder of a payment startup that offers UPI payments.

Industry insiders pointed out that NPCI wants to bring in larger ticket-size transactions onto UPI and the enhancement of the limit can be a big means to bring such recurring payments. ET wrote on December 1 about how NPCI is encouraging large ticket size transactions on UPI through RuPay credit cards.

Overall till November, UPI has processed 105 billion transactions settling overall Rs 164 lakh crore. Currently, UPI has become a full-stack payment mode, where consumers can use their savings accounts, credit cards, credit line from banks and even prepaid cards. Now with recurring payments, a large chunk of bill payments, loan repayments can also start flowing through the UPI ecosystem.