Advantages and Disadvantages of UPI AutoPay

Managing subscriptions, EMIs, utility bills, and OTT payments can be a headache—unless you’re using UPI AutoPay. It’s a feature designed to take the burden off your shoulders by enabling automatic recurring payments through the Unified Payments Interface (UPI). But like any tool, it comes with its own set of benefits and drawbacks.

Is UPI AutoPay Safe?

Yes, UPI AutoPay is a safe and reliable payment option. When you set up or activate UPI AutoPay, you grant explicit consent to the UPI app to automatically process payments on a fixed schedule—be it daily, weekly, monthly, quarterly, or yearly. The safety of this system is enhanced by the fact that you review and approve the entire process before agreeing to the amount of deductions.

One of the key advantages of UPI AutoPay is the flexibility it offers. You have the freedom to pause or deactivate the AutoPay feature whenever necessary, ensuring that you maintain control over your finances. Additionally, UPI AutoPay feature sends timely alerts and reminders before each payment. For instance, Paytm’s UPI AutoPay notifies you two days in advance of any upcoming transactions, giving you the opportunity to ensure that your bank account has sufficient balance for the scheduled deduction.

These notifications not only help you prepare for upcoming payments but also provide a safeguard against unexpected charges. If you ever notice something suspicious, you can quickly pause or cancel the payment to avoid any unwanted deductions.

Moreover, Paytm ensures that UPI AutoPay payments are always deducted on time, at the exact time you specified during setup. For example, if you’ve opted for Paytm’s daily SIP (Systematic Investment Plan), the designated amount is deducted consistently at the same time every day, accompanied by timely alerts and reminders.

To further enhance security, UPI AutoPay utilizes advanced encryption protocols to protect your financial data. Additionally, you can monitor your transaction history within the app, enabling you to track all deductions and maintain an accurate budget. This combination of features not only assures you of timely payments but also empowers you with control and visibility over your financial commitments.

Benefits of UPI AutoPay for Customers 

1. Financial Services –  UPI AutoPay allows you to automate recurring payments for essential financial commitments such as EMIs for loans, insurance premiums, and mutual fund SIPs. This system ensures that payments are made promptly, preventing you from missing deadlines and avoiding late fees or penalties.
2. Timely Payments – With UPI AutoPay, your payments are processed automatically according to a schedule that suits you. Whether you choose monthly, quarterly, or customized intervals, your recurring payments—from as low as Rs. 1 to higher amounts—are always handled on time, helping you stay organized without any manual effort.
3. Entertainment & Media Subscriptions –  UPI AutoPay ensures your subscriptions to OTT platforms are automatically renewed. You can activate single-channel subscriptions or bulk entertainment plans, ensuring continuous access to the latest content without any interruption.
4. Transit & Travel Payments – Streamline your daily commute by automating payments for travel passes, whether they’re daily, weekly, or monthly. UPI AutoPay ensures that you never have to worry about standing in long queues or losing your ticket again. It provides a seamless travel experience without the risk of penalties for expired passes or tickets.
5. E-commerce Flexibility –  UPI AutoPay offers a simplified checkout process, including “Buy Now, Pay Later” options for your online purchases. Payments are automatically deducted, making doorstep deliveries smoother. Additionally, UPI AutoPay allows you to modify, revoke, or pause your payment mandates based on changes in your orders, giving you flexibility and control over your purchases.
6. Education Payments –  Whether you’re enrolling in online courses or purchasing educational packages, UPI AutoPay simplifies the payment process. You can set up automatic payments for your selected courses, ensuring uninterrupted learning. It also allows you to manage educational expenses without the constant need for manual payment.
7. Online Delivery Services – UPI AutoPay can be set up for your frequent online purchases, allowing you to make seamless payments for deliveries right at your doorstep. This feature eliminates the need for cash transactions or searching for change, and it also provides options to modify or pause your delivery orders when required.

Disadvantages of UPI AutoPay

• Like all digital platforms, technical glitches or app downtime could delay your payments or cause transaction failures.
• The default mandate limit is ₹15,000 but can go up to ₹1,00,000 for select categories

• Some banks or merchants may not support it yet
• It requires users to ensure sufficient balance or risk failed mandates

UPI Autopay Safety Tips

1. Use Strong Security Measures: Enable two-factor authentication (2FA) for your UPI app to enhance security. Regularly update your app and device software to protect against vulnerabilities.
2. Regularly Monitor Transactions: Keep an eye on your bank statements and transaction history within your UPI app to spot any unauthorized or suspicious transactions quickly.
3. Set Alerts and Notifications: Activate notifications for every AutoPay transaction to remain informed about deductions and ensure that you have sufficient funds.
4. Review Subscriptions Periodically: Regularly review your active subscriptions to avoid forgotten payments. Cancel any services you no longer use.
5. Be Wary of Phishing Attempts: Always verify the authenticity of messages or emails asking for personal information related to payments. Avoid clicking on suspicious links.
6. Familiarize Yourself with App Features: Take the time to understand how to pause, modify, or cancel your AutoPay settings within the UPI app to ensure you can manage your payments easily.
7. Maintain Sufficient Balance: Keep a buffer in your bank account to cover recurring payments and avoid any overdraft charges.
8. Contact Customer Support: If you notice any discrepancies or have concerns about deductions, reach out to your bank’s customer support or the service provider for clarification or resolution. Implementing UPI AutoPay fraud prevention measures can help you navigate potential risks effectively.

How to Set Up UPI AutoPay on Paytm?

Step 1: Open the Paytm app on your device.

Step 2: Navigate to your profile by tapping the profile icon in the upper left-hand corner.

Step 3: Select ‘UPI & Payment Settings’ from the menu options.

Step 4: Click on ‘UPI Settings’, then choose ‘UPI Automatic Payments’.

Step 5: On the next screen, you’ll see a list of all your existing UPI automatic payments. To add a new one, tap on the three dots or menu icon in the upper right-hand corner.

Step 6: Click on ‘Setup New’, and then tap on ‘Setup New’ once more to start the process.

Step 7: Choose ‘Recharges/Bill Payments’ and select the automatic service you want to set up from the available options.

Step 8: Fill in the required information for the service you selected.

Step 9: Click on ‘Proceed’ to continue.

Step 10: Select the date or frequency for the payment (daily, weekly, monthly, etc.).

Step 11: Choose the bank account from which the amount will be deducted.

Step 12: Enter your UPI PIN to finalize the setup of your UPI AutoPay for the selected service.