For NBFCs, fintechs, and digital lenders, recurring payment collections aren’t just operational necessities — they’re the very backbone of your revenue engine. Yet, most businesses still tolerate inefficient systems, manual interventions, and outdated mandate processes that quietly eat into their profitability.
Let’s talk numbers.
Over 40% of recurring mandates are still getting rejected.
Payment delays stretch up to 4 days.
Monthly losses due to UMRN mismatches alone run as high as ₹3–4 crore.
And let’s not forget the 250+ daily customer support calls caused by payment failures, delays, or confusion.
If this sounds familiar, you’re not alone.
The Status Quo: Legacy Systems That Can’t Keep Up
Recurring payment collection, on the surface, seems straightforward — set up a mandate and let automation handle the rest. But in practice, the existing systems are riddled with friction points:
- Rigid, bank-specific authentication rules that aren’t communicated clearly to the user.
- Lack of pre-checks, leading to frequent UMRN mismatches.
- No retry intelligence, so even temporary technical failures result in lost opportunities.
- Delayed reconciliation and updates, forcing operations teams to track and escalate cases manually.
- Support overload, as customers raise tickets or calls for each failed payment or unclear status.
What starts as a simple failed mandate ends up consuming time, team resources, customer trust — and eventually, revenue.
The Financial Impact of Failed Collections
Let’s take a moment to quantify the silent costs:
- Mandate Rejections: With a 40% failure rate, every 1,000 mandates you initiate could mean 400 failed payments. That’s not just revenue delayed — it’s often revenue lost.
- Delayed Cash Flow: A 4-day delay in recurring collections directly affects your working capital, your lending agility, and your ability to disburse further.
- UMRN Mismatches: These technical mismatches might seem minor, but across volume-heavy portfolios, they can contribute to ₹3–4 crore in monthly losses.
- Operational Overhead: Chasing down failed mandates, clarifying with banks, dealing with customer escalations — these non-core tasks add friction and bloat to your ops.
The cost of doing nothing is high — and it’s recurring.
Customers Expect Seamlessness — Not Excuses
Today’s customers expect instant results, frictionless onboarding, and zero manual intervention. When a recurring payment fails, they don’t see it as a backend technical glitch — they see it as a brand failure.
Every failed mandate risks churn. Every delay hurts trust. Every support call erodes your brand promise.
In a world of UPI, instant settlements, and one-tap checkouts, customers won’t tolerate four-day delays or rejected mandates. And they shouldn’t have to.
The New Standard: Intelligent, Predictive Collection Systems
What if recurring payment collections didn’t have to be painful?
What if your system could:
- Predict the best mandate method (Aadhaar, netbanking, debit card) based on the customer’s bank?
- Automatically prevent rejections by applying bank-specific logic?
- Retry smartly, based on historical success rates and real-time flags?
- Eliminate UMRN mismatches at the source — not after damage is done?
- Push same-day collections, with instant visibility into success or failure?
This isn’t just a wishlist. These capabilities exist today.
The Paycorp Difference: Redefining Recurring Collections
At Paycorp, we’ve reimagined the recurring mandate ecosystem. We don’t just help you collect — we help you collect better, faster, and more reliably.
Here’s what sets us apart:
AI-Powered Authentication Engine
Our platform dynamically selects the most successful authentication method for each bank, eliminating guesswork and reducing drop-offs.
Rejection Rates Drop Below 15%
Our intelligent initiation flows guide customers seamlessly, ensuring higher success rates and fewer failed attempts.
Support Calls Reduced by 75%
With fewer errors and real-time status visibility, customers have fewer reasons to call — and your team has more time to focus on growth.
No More UMRN Mismatches
Our system validates and reconciles data upfront — ensuring that mandate failures due to mismatches are entirely eliminated.
Same-Day Collections
Why wait 4 days when your business needs cash now? Our infrastructure enables instant processing and settlement visibility.
Don’t Let Outdated Systems Define Your Growth Curve
Recurring collections are no longer just about compliance or automation. They’re about cash flow efficiency, customer satisfaction, and competitive edge. In a space where speed and reliability define winners, relying on legacy systems is like trying to win a race in a broken car.
You don’t need more patchwork solutions. You need a partner that understands the full ecosystem — and actively improves it.
That’s what we do at Paycorp.
Let’s talk about how we can future-proof your recurring collections — and unlock revenue that’s rightfully yours.
