Even after four years of existence, UPI users are still unfamiliar with the UPI AutoPay feature. According to a survey by digital payments fintech company Phi Commerce, 60% of merchants who participated in the survey agreed that users need to be more aware of this feature.
Based on respondents’ feedback, the survey report highlights the need to make it more intuitive, provide transparent opt-out mechanisms for those who want to discontinue the service, reduce friction, and provide flexibility.
The National Payments Corporation of India (NPCI) introduced UPI AutoPay, a new feature that allows customers to automate recurring payments, to simplify subscriptions and recurring transactions. Customers no longer need to worry about missing payment dates, leading to fewer disputes over subscription renewals. The survey covered 252 respondents, among its merchant base. In addition, polls were conducted on Phi Commerce’s social media platforms.
The survey report said this system streamlines payments, and also fundamentally alters the relationship between the business and patrons with the potential to build loyalty in a world plagued by churn and unpredictable customer behaviour.
Around 30% of merchants cited concerns over the lack of customer-friendly navigation in UPI apps, specifically the absence of an easily accessible `Manage AutoPay’ button. This lack of visibility makes UPI AutoPay less intuitive when compared to similar features offered by international payment providers, where recurring payments are more seamlessly integrated.
The use of UPI AutoPay had a positive impact on merchants’ business, improving cash flow. Around 60% of respondents said they were able to retain more customers due to UPI AutoPay, the Phi Commerce survey said. Around 55% of merchants reported an improvement in customer satisfaction as one of the leading benefits of adopting UPI AutoPay. A sizable number felt that 20% or more of their clientele continued with subscriptions after activating AutoPay.
However, on the flip side, the survey notes there was a danger of overpaying. Around 30% of merchants agreed that customers might end up paying more if they do not manually stop the AutoPay facility when they end the subscriptions.
Around 44% of respondents thought NPCI should be putting out more newspaper advertisements, creating more awareness, and explaining the feature and how to activate the feature.
Phi Commerce is a payment aggregator payment gateway licence holder and offers omnichannel payment solutions to enterprises for flexible payments across all consumer touch points.