NPCI to allow porting of UPI auto-pay mandates across apps
India's National Payments Corporation of India (NPCI) is preparing to make UPI AutoPay interoperable, allowing users to port existing recurring payment mandates across UPI apps. Merchants will also be able to move their mandates to new payment gateways.
The National Payments Corporation of India (NPCI) is set to introduce interoperability for its Unified Payments Interface (UPI) AutoPay service, enabling users to transfer existing recurring payment mandates between different UPI applications. This move will also allow merchants to shift their mandates to new payment gateways when changing service providers.
The changes are anticipated to be announced at the Global Fintech Fest in Mumbai next month. The initiative aims to simplify recurring payment management for consumers, eliminating the need to cancel and recreate mandates when switching apps. For merchants, it facilitates a smoother transition between payment gateways without losing existing customer mandates.
UPI AutoPay, launched in 2020, allows businesses to automatically debit customer accounts at set intervals for recurring payments such as subscriptions, insurance premiums, and loan repayments. The upcoming interoperability will provide users with the ability to view and manage their eligible mandates across various UPI apps.
Industry observers note that this move is partly driven by smaller UPI apps seeking a more level playing field. They view AutoPay as a crucial factor for customer retention, as the complexity of moving mandates can discourage users from switching apps. By reducing friction in app switching, smaller players hope to compete more effectively with established providers.