UPI Autopay: Benefits and Use cases
Joshua D'Costa
Growth & Marketing
Nov 21, 2025
|
5
min
For any SaaS or subscription business serving Indian customers, recurring payments are a constant operational hurdle: failed cards, expired cards, and clunky checkout flows all add to churn. UPI Autopay is changing that equation. It brings native recurring payments to India’s massively popular UPI ecosystem, letting users authorize repeat charges via a one-time mandate and helping merchants reduce failed payments and friction at renewal.
Let’s unpack what UPI Autopay is, how it works, the benefits for both users and merchants, and most practically, how users and merchants can enable UPI Autopay when using a payments partner like Dodo Payments.
What is UPI Autopay?
UPI Autopay is an electronic mandate system built on top of India’s Unified Payments Interface (UPI) that allows a customer to authorize recurring or scheduled payments like subscriptions, memberships, utility bills, etc.without entering card details every time. Instead of storing card numbers, merchants request a mandate; the user approves it within their UPI app (or via a bank/PSP flow), and subsequent charges happen automatically according to the agreed schedule and limits.
Key characteristics:
Works inside the UPI ecosystem (no card on file required).
Uses a one-time approval to permit future debits.
Can support fixed or variable billing models when supported by the PSP and bank.
How UPI Autopay works
Here’s the customer and technical flow in user-friendly steps:
Merchant requests a mandate: At checkout or subscription setup, the merchant asks the user to enable UPI Autopay for recurring charges.
User approves the mandate: The user is redirected to their UPI app and approves the mandate by authenticating, usually with UPI PIN. The mandate defines frequency, maximum amount (if any), and duration.
Mandate confirmation: The PSP/bank confirms the mandate creation to both the merchant and the user.
Automatic debits: On scheduled dates or when a variable amount is due, the merchant triggers a debit request against the active mandate; the payment is processed without additional user action.
Notifications and webhooks: Both user and merchant receive confirmations; the merchant’s system via webhooks updates subscription status and access.
That entire flow is designed to happen securely and quickly, and it removes the need to maintain sensitive card data while improving recovery rates for failed payments.
Benefits of UPI Autopay
For businesses and users alike, UPI Autopay delivers practical advantages that matter to subscription-led growth:
Lower churn from failed renewals: With mandates in place, you don’t rely on expiring card numbers or forgotten passwords, renewals succeed more often.
Better conversion for Indian customers: Many Indian customers prefer UPI to cards; UPI Autopay removes friction and matches local payment habits.
No card-on-file PCI complexity: You avoid storing or managing card data in many cases because the mandate lives in the UPI/bank ecosystem.
Support for usage and subscription models: Merchants can collect fixed recurring fees or trigger variable charges up to a pre-approved limit (when the mandate type allows it).
Clear user consent: Mandates give explicit authorization for future debits, which improves trust and reduces disputes.
Seamless mobile UX: Since many Indian users transact through UPI apps on mobile, the flow is fast and familiar, good for retention.
Collectively, these benefits translate into smoother cash flow, reduced manual recovery work, and a better customer experience for Indian users.
How users can enable UPI Autopay with Dodo Payments
If you use a payments platform that supports UPI Autopay like Dodo Payments, enabling the feature is straightforward for both the merchant and the end user. Below is a practical, non-technical walkthrough of the typical steps:
For users
Choose UPI Autopay at checkout: When subscribing, select the UPI Autopay option in the payment methods list.
Approve the mandate: You’ll be prompted to open your UPI app (or see an in-app approval). Review the mandate details and authenticate with your UPI PIN to approve.
Receive confirmation: The app and the merchant send confirmation messages once the mandate is active. After this, future charges happen automatically per the mandate.
Manage or cancel mandates: Users can usually view and cancel active mandates from their UPI app or bank’s mandate section at any time, subject to the merchant’s billing terms.
For merchants using Dodo Payments
Enable UPI Autopay support in your dashboard: Configure UPI as an accepted payment method and enable recurring collection via mandates.
Choose the integration path: Use Dodo Payments checkout components, SDK, or API to present the UPI Autopay option during subscription setup. Dodo Payments routes the mandate flow to the user’s UPI app.
Listen for mandate confirmations: Once a user approves a mandate, Dodo Payments will notify your backend (typically via webhooks) so you can mark the subscription active.
Trigger recurring or variable charges: When a payment is due, request a debit under the active mandate. Dodo Payments handles the underlying processing and will return the payment status.
Test in sandbox, then go live: Validate the entire flow in a test environment before switching keys to production; verify webhook handling and failure scenarios.
Final Thoughts
UPI Autopay has a user-first approach to recurring billing in India, especially valuable for SaaS, subscription services, and any business seeking reliable renewals among Indian users. It aligns with local payment preferences, reduces card-related friction, and delivers a cleaner UX for mobile-first customers.
If your product serves Indian customers, consider adding UPI Autopay to your payment mix. Partnering with a payments platform that supports UPI mandates will get you live faster and reduce the maintenance overhead of recurring collections.
Want help assessing whether UPI Autopay is right for your billing model or how to wire it into your stack? I can draft an integration checklist or a short tech spec for your dev team.
