UPI Autopay: Revolutionizing Traditional Auto-Pay Systems

PhiCommerce enables merchants and enterprises to set up one-time and recurring payments for their customers using any UPI application without requiring a PIN for every transaction. UPI Autopay facilitates PIN-free recurring payments for transactions up to Rs. 1,00,000 for insurance, mutual fund, and credit card bill payments, and up to Rs. 15,000 for other payments, such as utilities, telecom bills, society maintenance charges, club and gym memberships, daily transportation, and regular grocery bills.

With its versatile usage—from insurance premiums and loan EMIs to daily transport and utility bills—UPI Autopay with PhiCommerce caters to diverse payment needs, making it beneficial for every user. We believe UPI Autopay with PhiCommerce is a game-changer in the payments landscape, offering unparalleled convenience, security, and efficiency.

In an exclusive interaction, Rajesh Londhe, Co-Founder and Head of Payments at PhiCommerce, and Ramkumar Subbaraj, Co-Founder and Chief Technology Officer at PhiCommerce, shared insights on UPI Autopay. They discussed its unique features compared to existing bank autopay facilities, the enhanced security provided by PCI SSF certification, and the efficiency gains from real-time registration, authorization, and debit. They also highlighted upcoming trends in the payments industry related to UPI Autopay, the impact on managing multiple autopay platforms by enterprises, and anticipated regulatory changes in the payments space.

How does UPI Autopay differentiate itself from the existing bank autopay facilities?

If we were to elaborate, the existing auto-pay feature available in the banking industry is a traditional facility where you need to register yourself for auto debit. This feature is implemented by banks in various ways. There are traditional methods, such as filling out a physical form, signing it, and submitting it to the biller, who then forwards it to the bank for regular interval debits. This traditional auto-debit functionality has been in use for 30-40 years in the banking industry.

Of course, it has evolved to become more digital. However, it still has its limitations and occasional hiccups. Although it works, it isn't as efficient as it could be. After the UPI launch, the success of which has been witnessed across, the UPI auto-pay feature within the UPI ecosystem is a complete game-changer. It will revolutionize the traditional auto-pay system for all subscription-based payments, making it a seamless mechanism for account debiting whenever needed.

Auto-pay today operates in two stages: registration of the auto-pay mandate and the actual debit process. Traditionally, one would register for auto-pay by visiting a biller online or offline and then filling out a registration form etc. In contrast, UPI offers a fully digitally integrated process without any physical forms, making it extremely convenient for consumers to register for auto debit for all subscription or recurring based payments.

When it comes to debiting your account, UPI auto-pay can handle various intervals, such as one-time, monthly, or quarterly debits, based on the consumer’s instructions to the bank. The process is very seamless. The most significant benefit of UPI auto-pay for consumers is the visibility it provides, notifying them when their account is debited in real time.

UPI auto-pay registration is straightforward and seamless, and consumers receive notifications via their UPI application when their account is debited. This convenience is especially beneficial for mutual funds SIP or insurance premium recurring payments where transactions below one lakh rupees don't require additional authorization. Similarly, for utility payments below 15,000 rupees, no PIN is needed, making the process incredibly smooth.

From our perspective, UPI auto-pay is a complete game-changer, and it will fundamentally change how auto-pay works in the country.

How does PCI SSF certification enhance the security of UPI Autopay?

PCSS certification is related to the product. Phi Commerce products, is certified for PCSS, an industry-leading certification for security. This certification analyzes the product in terms of various aspects of security, from the conceptualization of the product to the design, architecture, and processes followed. This includes the security frameworks used, encryption methodologies, and data storage methods. 

Can you explain the efficiency gains with real-time registration, authorization, and debit?

When the support restriction is as Rajesh pointed out, it is very seamless. As users, we are all accustomed to using UPI applications for payments. The registration process is seamlessly integrated into the payment system. For example, if you are paying using UPI for services like your mobile bill payments or your broadband subscriptions you can enable auto pay as part of the payment process. This means you can set up auto pay to automatically debit your account every month.

When you first set up auto pay, you follow the usual UPI payment process, but with the added instruction to automatically debit your account the following month. This registration process is very seamless and familiar to the customer; it doesn't require any special changes. Going forward, before each debit, you will receive a notification informing you that the payment will be debited the next day. If the transaction amount is below a certain value, it is seamlessly integrated into the notification system, allowing you to stop the debit immediately if needed. This eliminates the need to wait for the debit to occur and then raise a dispute.

You will receive a notification before each auto pay debit, and you can stop the debit directly from the notification. Additionally, you can manage your mandates from your UPI applications of the likes of , Google Pay, Amazon Pay, PhonePe etc. You can pause, resume, or stop auto pay as needed, all from the same application you use for regular payments.

This process has become very convenient for consumers. Over the last three to four years, since UPI was launched, we have become habituated to using PSP applications, making UPI transactions common for even the smallest amounts.

In contrast, traditional auto pays functionalities provided by banks are cumbersome. If you need to stop an auto pay for the coming month, you may need to log into your bank's online banking system, find the auto pay feature, and stop there. Some banks may not even provide this feature within their online banking, requiring you to use a separate portal.

However, with UPI, the process is user-friendly. The additional step built into the UPI platform makes it easy to approve or stop auto pay transactions or put them on hold. From a consumer's perspective, this convenience is unmatched.

What are the upcoming trends in the payments industry, specifically related to UPI Autopay?

Digital payments are booming not only in India but across the world. Infact, India is leading the way in digital payments. We have surpassed various countries, in this domain. As far as UPI is concerned, it will continue to flourish, experiencing multifold growth.

Now, when it comes to additional payment modes as part of the API ecosystem, they will keep emerging. Recently, the RBI allowed credit cards to be linked to UPI. I personally believe this will grow very quickly. Previously, UPI involved direct debit from bank accounts, but now we can link credit cards to UPI, enabling credit card payments through UPI.

Another significant development is the potential for autopay on the UPI platform. This feature has tremendous potential to grow. Today, many industries, such as mutual funds, insurance, credit card payments, and utilities (like electricity and water bills), all regular subscriptions etc.  generally, use autopay mechanisms. Offering consumers the convenience of managing these payments through an app will encourage adoption. I believe there will be significant growth in autopay on UPI in the coming years, and consumers will opt for this feature.

What is the anticipated impact on the management of multiple autopay platforms by enterprises?

The positive impact is significant. Today, we will give an example of one of our corporate customers who still supports paper-based functionality. The effort and bandwidth required to get the registration done, followed by the subsequent steps, is humongous. However, when you integrate the product with auto pay, the process becomes seamless. It not only save cost in terms of back office processing, the cash flow for the corporate is positively impacted, We think auto pay will help them achieve that.

What regulatory changes are expected in the payments space?

From an RBI and government perspective, the regulatory frameworks in India are very strong. They focus on the overall financial health of the ecosystem for the long term, the goal is always financial health and stability in the long run, Being a regulated entity, our eyes and ears are always open We, as an organization, always ensure to be complaint with the law of the land.

How does PhiCommerce stay ahead of the curve with these changes?

We as an organization believe in building something that is always ahead of its time. Our platform, which is India's first and only omni-channel platform, is a testament to this belief. We invested in it back in 2015 when the concept of omni-channel was not yet recognized in the country.

This forward-thinking approach is central to our philosophy. We anticipate trends and start building solutions at least two years before they become mainstream.

Our goal is to develop products for large organizations that enhance their efficiency and streamline their operations. This forward-looking mindset is the core of our organization's mission.

What are some key milestones in your 20-year career in the payments industry?

So, if you talk about PhiCommerce as an organization started in 2015 and became operational in 2016. We pioneered the product "payment on delivery," a unique offering at that time. No one else had thought of it, and we launched this product in 2016 along with demand, which was a very proud moment for us. Today, we hold 70% of the market share in payment on delivery for third-party logistics companies in the country.

Following this, we ventured into the core payment aggregation business. We believed that "phygital" (the convergence of physical and digital) is the era that India is moving towards, and our business has grown in that direction. We have onboarded many corporates, providing payment processing platforms for their presence in both physical stores and online. This growth has always been part of our strategy. A classic example is our empowerment of digital payments for Bangalore International Airport across both Terminal 1 and Terminal 2, in both the online and offline worlds.

This is something we will continue to do. One thing I would really like to point out is that we have recently started our international operations. We have opened an office in Singapore and have plans to expand into the international market. We have identified a couple of markets in Southeast Asia and the Middle East as our focus for the next couple of years, with the intention to start actual implementation this year.

Can you share any success stories or case studies related to the implementation of UPI Autopay?

We are currently implementing an auto-pay solution for one of the largest BFSI corporations in the country, covering mutual funds and insurance organizations. 

Regarding our business approach, we would like to emphasize that we are a homegrown organization dedicated to promoting India's digital payment modes. This commitment is central to our strategy. We will continue to drive our growth by providing payment platforms for corporates, focusing on unified payment solutions and expanding our omni-channel platform both domestically and internationally.

We would like to  highlight that our tech roadmap team ensures our technology remains ahead of the curve, especially in terms of security. For instance, we were early adopters of the PCI PA-DSS Payment Best Practices certification and the PCI DSS standard. When PCI DSS version 3 was released, and later version 4, we were among the first organizations to adopt these standards, even when it was optional. This commitment to adopting the latest security frameworks and architectural advancements ensures we stay ahead in the industry.