BY BW Online Bureau
The uptick in integrating UPI’s autopay facility is attributed to the RBI rule which makes recurring payments through debit and credit cards more stringent.
Two of India’s largest over-the-top (OTT) streaming services, Netflix and Disney+ Hotstar, went live on UPI Autopay this month and at least 100 other online merchants across categories such as streaming, financial services, wealth management, news media and education are learnt to be in various stages of testing before full-scale rollouts, as reported by ET.
The sudden rise in integrating UPI’s autopay facility is attributed to the RBI rule which makes recurring payments through debit and credit cards more stringent by adding new authentication factors such as pre-debit notifications to customers every month.
According to ET, most banks are yet to comply with the RBI’s guidelines for recurring payments which could eventually lead to a further uptick in Autopay transactions as merchants migrate to the platform.
The autopay facility or recurring payments can prove to be a gamechanger for small businesses collecting monthly fee, as it allows them to have a customizable debit agreement with customers through one time consent. At the same time, the mobile native design of UPI makes it easier for merchants to send pre-debit notifications to customers for these transactions.
(With Inputs from ET)