7 Merchants go Live on UPI Autopay – Hm, Not fully Live!!

         NPCI has launched the functionality of UPI AutoPay for recurring payments.

With this new facility introduced under UPI 2.0, customers can now enable recurring e-mandate using any UPI application for recurring payments such as mobile bills, electricity bills, EMI payments, entertainment/OTT subscriptions, insurance, mutual funds among others.

Recurring payments can be defined as payments that

are made every month or at least once in three months.

The following Seven Merchants as per NPCI website are Live on UPI AutoPay as on 15^th January 2021.

1.    Angel Broking

2.   CRY

3.   Goonj

4.   CAMS

5.   The Hindu

6.   PayG

7.   Danamojo

However, few merchants have yet to update the UPI AutoPay facility on their website. Hopefully the merchants will update the UPI AutoPay process on their websites very soon.

 

Angel Broking: Angel Broking has become the first in the industry to offer Unified Payment Interface (UPI) AutoPay for mutual funds, the company said. It has received approval from the National Payments Corporation of India (NPCI) for the new service.

This new implementation will simplify the process while cutting down the e-mandate authentication time to less than a minute, Angel Broking said in a statement. UPI AutoPay will eliminate the e-mandate registration cost as well and has "made its management possible with the touch-of-a-button experience".

The complete statement can be read @ https://www.livemint.com/mutual-fund/mf-news/angel-broking-to-allow-upi-autopay-facility-for-mutual-fund-11604660144945.html

 

CRY: As per CRY website, it's Vision is " A happy, healthy and creative child whose rights are protected and honoured in a society that is built on respect for dignity, justice and equity for all."

    As on date, CRY website does not mention about UPI AutoPay as a way to donate.

In case you wish to know more about CRY option for UPI AutoPay drop an email on

cryinfo.mum@crymail.org and wait for a response.

Goonj: As per Goonj website, Goonj envisions to grow as an idea across regions, economies and countries using urban discard as a tool to alleviate poverty and enhance the dignity of the poor in the world. Address basic but neglected issues of the poor by involving them in evolving their own solutions with dignity and urban material as reward.

As on date, Goonj website does not mention about UPI AutoPay as a way to donate.

In case you wish to know more about Goonj option for UPI AutoPay drop an email on mail@goonj.org and wait for a response.

 

CAMS: CAMS offer’s UPI AutoPay via CAMSPay. CAMSPay is a Bespoke payment platform built for Mutual Funds, NBFCs and Insurance companies to collect payments from their customers.

In fact, Angel Broking offers UPI AutoPay to its customers via CAMSPay only.

Read more @ https://www.livemint.com/mutual-fund/mf-news/angel-broking-now-allows-upi-autopay-for-mutual-funds-11604558857577.html

Quote

Angel Broking has partnered with CAMSPay to process UPI recurring payments. The service will be integrated into its other platforms shortly as well.

Unquote

 

The Hindu: The Hindu website has a detailed FAQ page regarding the various subscription plans.

The complete set of FAQs can be read here : https://subscription.thehindu.com/recur_subscription

The UPI Autopay for recurring subscriptions is yet to be officially announced on ‘The Hindu’, website.

The following specific FAQs may be helpful:: -

16. How are digital subscriptions billed?

As a digital subscriber, you can pay via debit or credit card, net banking, e-wallet, UPI.

 

UPI and e-wallet and net banking are not applicable if you have opted for a recurring plan.

______

31. What does a recurring plan mean?

If you have selected a recurring plan, your subscription will get renewed automatically when it expires, and payment will be deducted from your connected account. Right now, recurring plans are available only on the 1-month and 1-year plans for our first time subscribers.

 

37. What payment modes are accepted for recurring payments?

Recurring payments are available via all credit cards, select debit cards (CITI, ICICI, PNB, KOTAK). It is not available for payments via UPI, wallets and net banking payment modes.

    In case you are interested to more about ‘The Hindu’, UPI AutoPay feature, drop a mail @  customersupport@thehindu.co.in and wait for response.

PayG: PayG- Unified Platform!. As per PayG's website, PayG is a customized, fully integrated, Omni channel payment solutions provider will help your business to grow by collecting payments from customers easily and securely through any device in any mode.

PayG has a dedicated webpage regarding UPI AutoPay. The page can be accessed @ https://payg.in/upi-autopay-the-next-generation-payment-platform.html

danamojo: danomojo tagline is " experience the magic of giving". As per danomojo website, it is 'India’s first payment solutions platform for NGOs'.

The UPI AutoPay is enabled on danomojo website but is valid only for UPI users holding an ICICI or SBI UPI id.

Please refer to the below screenshot for more details.

 

Disclaimer: These are my personal views only. Trademarks if any rest with the original trademark owners only.

Tango between UPIAutoPay and BBPS – ‘Pigmy Deposits’ Collection Module for Utility Bills, Loan EMIs

            Semi- Inspiration for this Post – Syndicate Bank Pigmy Deposit Scheme

            Syndicate Bank adopted the concept of Pigmy bank to assist its customers to grow their pot of savings. Over the decade's Syndicate Bank had stupendous success in its PigmyBank Scheme and was adopted by numerous financial institutions across the world.

It was in 1928, that Syndicate Bank introduced the innovative savings scheme 'Pigmy Deposits', to mobilize small savings. This scheme led Syndicate Bank to be known as the `Small Man's Big Bank'.

In simple terms, under the ‘Pigmy Deposits’ Recurring Deposit scheme, Pigmy agents visit the doorsteps of the depositors to collect the daily deposit.

The deposit could be as little as INR5/-.

Quote

As another Mint columnist wrote in a fabulous column titled Before Thaler there was Pai, “The testimonies of some of the pigmy depositors shows this emphatically. One woman fainted upon hearing the amount of saving, another asked Pai not to inform her husband about the savings and yet another built a house using the savings, calling it Pigmy House."

Unquote

The same concept can be adopted to lessen the pain of payment of Utility Bills, Loan EMIs or any biller on the BBPS platform.

The Process flow:

A)     Subscriber opts for the BBPS UPIAutoPay module in his/her APP

B)     Subscriber chooses the BBPS Biller, inputs his/her Biller identification number, inputs the monthly saving amount, daily saving amount, and VPA

C)     Subscriber inputs the payment date i.e Bill Due Date LESS 2 days or 3 days

D)     The UPIAutoPay process kicks in.

E)      The collection process i.e Debit Subscribers Bank’s Account – Credit Subscribers Virtual Collection Account, via UPIAutoPay, takes places on the scheduled days i.e Daily/Bi-Weekly/Weekly etc.

F)      Once the payment is made to the BBPS Biller, the payment receipt be shared to the subscriber.

Mandatory Requirements:

01)  BBPS Biller to accept partial payments.

02)  Dedicated Helpdesk by the BBPS Biller to resolve any issues

03)  Narration – Subscribers Bank Account for the UPIAutoPay transaction ___ BBPS Biller Name / Identification Number / Virtual Account Provider Name

 

Quick FAQs

Q) Who can offer this facility?

Ans: Any RBI recognized PPI Issuer

Q) What should be service charges for this facility?

Ans) Reasonable, say INR 50/- to set up the one Virtual Collection Account. INR10/- maintenance fee + MDR per virtual collection account, per month. Basically, it will depend on the business plan of the offering institution. Reward points can be the sweetener.

Q) Should the subscriber be allowed to break a respective virtual collection account.

Ans) Ideally no, to minimize such thoughts, penalty charges can be levied to break the virtual collection account

There will be teething issues, however over a period of time, as the participants mature, this will benefit the whole ecosystem.

Additional Reading Material

01)  Syndicate Bank relaunches Pigmy collection scheme @ https://www.oneindia.com/2007/03/01/syndicate-bank-relaunches-pigmy-collection-scheme-1174137440.html

02)  UPI 2.0: The digital pigmy @ https://www.livemint.com/Opinion/YtRDoDK913EfV25iIDvTWI/UPI-20-The-digital-pigmy.html

03)  Should UPI (Unified Payments Interface) take lessons from Syndicate Bank’s pigmy deposit scheme? @ https://mostlyeconomics.wordpress.com/2018/01/03/should-upi-unified-payments-interface-take-lessons-from-syndicate-banks-pigmy-deposit-scheme/

04)