UPI Pay Later (also known as UPI Credit Line or UPI on Credit) allows you to make payments now and pay the bill later. This feature extends a credit line from participating banks or NBFCs that you can use for UPI transactions.

How UPI Pay Later Works

• Credit Line: A pre-approved credit limit is assigned to you by a bank or financial institution.
• Instant Payments: You can use this credit line for UPI payments at any merchant that accepts UPI.
• Billing Cycle: All transactions made during a billing period are consolidated into a single bill.
• Repayment: You repay the total amount by the due date, typically within 15-45 days depending on the provider.

What Happens When You're Billed

1. Transaction is Recorded

• When you make a UPI Pay Later payment, the amount is debited from your credit line, not your bank account.
• The transaction appears in your Paytm transaction history with a 'Credit' tag.

2. Bill Generation

• At the end of your billing cycle, a consolidated bill is generated.
• You receive a notification with the total amount due and the payment deadline.

3. Repayment Options

• Full Payment: Pay the entire bill amount by the due date to avoid interest charges.
• Minimum Payment: Some providers allow partial payment, but interest may apply on the remaining balance.
• Auto-Debit: You can set up auto-debit from your linked bank account for hassle-free repayment.

Key Points to Remember

• Interest: If you don't pay the full amount by the due date, interest charges may apply.
• Credit Score: Timely repayment positively impacts your credit score; delays can negatively affect it.
• Limit Management: Keep track of your available credit limit to avoid declined transactions.

For more details, visit: UPI Pay Later Guide