India has undergone a tremendous change in its financial sector over the past few years, especially in areas of digital payment systems. These are various payments but a particularly notable one that stood out is the Unified Payments Interface (UPI) which has made the payments even easier and faster thus improving the overall user experience of the payment process. This development is accompanied by the UPI mandate system that has contributed to the adoption of a subscription-based model across all sectors. 

Now let us understand the impact of the UPI mandate in India.

What is the UPI Mandate? 

The UPI mandate allows businesses to set up recurring payments by obtaining one-time authorization from customers. They help businesses eliminate unnecessary human interventions, especially for services that involve monthly, bi-weekly, or weekly subscriptions. Customers give their consent once for the payment to be made and the system debits the agreed amount at the agreed interval without requiring the initiative of the company. 

This feature helps subscription-based services collect payments from their customers whenever they want without hitches like failed payments. Over the years, the UPI mandate has received tremendous response from sellers as well as buyers because it is user-friendly, efficient, safe, and dependable.

The Rise of Subscription-Based Model in India 

India’s digitization is not limited to e-commerce now but it’s spread across other forms of subscription-based services. Here, let’s take a closer look at some of the industries that are experiencing huge growth in subscription-based models, primarily thanks to the UPI mandate. 

1. Entertainment & OTT Platforms: Subscription-based video streaming platforms such as Netflix, Amazon, and Disney+ Hot Star have witnessed an enormous surge in India. These platforms rely heavily on UPI mandates to ensure hassle-free payment for their customers. Users are no longer required to manually renew their subscription every month: Instead, the UPI mandate automatically deducts the subscription fee on the due date. This convenience has played a significant role in boosting user retention and increasing subscriptions. 
2. Fitness and Wellness: The fitness industry in India has also embraced subscription-based models. With the UPI mandates, these businesses have streamlined payment processes, ensuring uninterrupted service to their customers. Fitness enthusiasts can subscribe to monthly or yearly plans and stay focused on their goals without worrying about payment reminders. 
3. E-Commerce and Physical Commerce: Subscriptions have always found their way into e-commerce and physical commerce delivery services. Customers with the feature of UPI mandates are enabled to complete payments in a way that recurring orders and payments for deliveries are automatically processed.

Why Business Prefer UPI Mandates 

• Guaranteed Payments: Once a customer sets up a UPI mandate, the business can replay on regular, timely payments minimizing the risk of churn caused by missed or delayed payments 
• Reduced Operational Cost: With automated payment the need for a manual intervention is reduced. 
• Higher Retention Rates: Once paid through automated ways the customers are likely to remain subscribed as they are not forced to go through the pain of renewal. 
• Improved cash Flow: There is a steady stream of income in the subscription model. They allow businesses to better forecast their revenue and manage cash flow. 
• Instant Authentication with UPI PIN: UPI PIN simplifies recurring payments by ensuring a seamless and secure process. After the user selects UPI Mandate during checkout and reviews the mandate details, they are prompted to enter their UPI PIN to authorize the request. Once the PIN is verified, the payments are successful, and the recurring mandate is securely created, allowing for future automated payments. This ensures a quick and reliable experience.

UPI mandates are leading the shift to subscription-based monetization, and provide mutually beneficial options both to the business and the customer. Being convenient, secure, and reliable, UPI has acted as a revolutionizer in managing recurring payments. With more industries moving towards this model, the business will be able to count out an increased revenue flow, as the consumers will be able to access any services.

Conclusion:

At Paycorp, we specialize in recurring payment solutions, empowering businesses with the efficiency of UPI Autopay. Our innovative platform simplifies management, ensures timely payments with minimal effort, and avoids delays. With Paycorp’s UPI autopay, Businesses can automate their payment cycle, delivering a hassle-free experience, and guaranteeing consistent and timely Payments.