Is UPI AutoPay Safe? Check Key Features and Security

UPI AutoPay offers a secure, convenient way for recurring payments, regulated by NPCI standards.
Is UPI AutoPay Safe? Check Key Features and Security
SET UP UPI
5 mins
7 November 2024
UPI AutoPay is a feature designed for automating recurring payments through the Unified Payments Interface (UPI). Launched by the National Payments Corporation of India (NPCI), it allows users to set up mandates for regular expenses like bills, subscriptions, and investments. This system ensures that payments are processed automatically without the need for manual intervention each time.

Users can select payment frequencies—daily, weekly, monthly, or yearly—making it convenient to manage finances. By eliminating the hassle of remembering due dates, UPI AutoPay promotes timely payments and reduces the risk of late fees.

Is UPI AutoPay safe? Key security features explained

  • Explicit consent: Users must approve payment mandates before they are activated.
  • Two-Factor Authentication (2FA): Enhances security by requiring a second form of verification alongside the UPI PIN.
  • Transaction alerts: Notifications are sent before each payment, allowing users to ensure sufficient balance.
  • Regular monitoring: Users are encouraged to review transaction histories to spot unauthorised activity quickly.
  • Secure networks: It's advisable to conduct transactions over trusted networks to avoid hacking risks.
  • Phishing awareness: Users should be cautious of unsolicited requests for personal information related to payments.
How to set up and manage UPI AutoPay mandates

  • Open merchant app: Choose the app where you want to set up AutoPay.
  • Select payment method: Choose UPI as your payment option.
  • Enter UPI ID: Provide your UPI ID for processing payments.
  • Set payment frequency: Decide how often you want payments deducted (daily, weekly, etc.).
  • Verify merchant details: Always check merchant information before finalising.
  • Approve mandate: Confirm the mandate by entering your UPI PIN.
  • Manage mandates: Access settings in your UPI app to modify or cancel mandates as needed.
Benefits of using UPI AutoPay for recurring payments

  • Timely payments: Ensures bills and subscriptions are paid on time, preventing late fees.
  • Convenience: Automates tedious tasks like bill payments and subscriptions without manual effort.
  • Flexibility: Users can easily modify or pause mandates based on their needs.
  • Financial management: Helps in budgeting by scheduling regular payments and avoiding overspending.
  • Wide usage: Applicable for various services like utilities, loans, and entertainment subscriptions.
How to cancel or pause UPI AutoPay mandates

  • Open your UPI app: Access the application where you set up AutoPay.
  • Navigate to mandates section: Find the section dedicated to managing AutoPay mandates.
  • Select the mandate: Choose the specific mandate you want to cancel or pause.
  • Choose action: Decide whether to cancel or temporarily pause the mandate.
  • Confirm changes: Enter your UPI PIN to finalise the cancellation or pause request.
  • Check notifications: Look out for confirmation messages regarding your changes.
Conclusion

In conclusion, UPI AutoPay is a convenient solution for managing recurring payments. It automates transactions, ensuring timely payments and reducing the risk of late fees. With robust security features, users can feel confident in their financial safety. Setting up and managing mandates is straightforward, offering flexibility to adapt to changing needs.

Canceling or pausing mandates is also easy, providing users with control over their finances. Overall, UPI AutoPay enhances financial management and simplifies the payment process, making it an excellent choice for anyone looking to streamline their recurring expenses.

Disclaimer

1. Bajaj Finance Limited (“BFL”) is a Non-Banking Finance Company (NBFC) and Prepaid Payment Instrument Issuer offering financial services viz., loans, deposits, Bajaj Pay Wallet, Bajaj Pay UPI, bill payments and third-party wealth management products. The details mentioned in the respective product/ service document shall prevail in case of any inconsistency with respect to the information referring to BFL products and services on this page.

2. All other information, such as, the images, facts, statistics etc. (“information”) that are in addition to the details mentioned in the BFL’s product/ service document and which are being displayed on this page only depicts the summary of the information sourced from the public domain. The said information is neither owned by BFL nor it is to the exclusive knowledge of BFL. There may be inadvertent inaccuracies or typographical errors or delays in updating the said information. Hence, users are advised to independently exercise diligence by verifying complete information, including by consulting experts, if any. Users shall be the sole owner of the decision taken, if any, about suitability of the same.

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Frequently asked questions

Is UPI AutoPay safe for recurring payments?
Yes, UPI AutoPay is considered safe for recurring payments. It requires explicit consent from users to set up mandates, ensuring control over transactions. Additionally, it employs security measures like two-factor authentication and sends notifications before each payment, allowing users to monitor their accounts effectively.

What kind of payments can I use UPI AutoPay for?
UPI AutoPay can be used for various recurring payments, including utility bills (electricity, water), subscription services (OTT platforms like Netflix), loan EMIs, insurance premiums, and mutual fund investments. This flexibility allows users to automate multiple financial obligations conveniently through their preferred UPI applications.

Does UPI AutoPay reveal my bank details to merchants?
No, UPI AutoPay does not disclose your bank details to merchants. The system uses a unique Virtual Payment Address (VPA) instead of sharing sensitive bank information. This ensures that your financial data remains secure while allowing merchants to process payments efficiently.

How can I ensure my UPI AutoPay transactions are secure?
To ensure your UPI AutoPay transactions are secure, enable two-factor authentication (2FA) for an extra layer of protection. Regularly monitor your transaction history and set alerts for each payment to detect unauthorized charges promptly. Always verify the legitimacy of payment requests and avoid sharing your UPI PIN or personal information.

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