Pros & Cons of UPI Autopay Explained Briefly

UPI autopay (Unified Payment Transfer) is the most preferred method of financial payment digitally. Using UPI autopay you will be able to automate the recurring bill payments at an ascertained time every month. You can generate an e-mandate to nullify all the billings. This type of automated digital payment involves:

  1. Mobile payments
  2. EMI deductions
  3. Electricity bills
  4. Insurance requitals
  5. OTT platform monthly/yearly subscriptions
  6. Mutual fund payments (SIP)

The primary objective of UPI autopay is to make the payment procedure more efficient, acquirable and easy. Cashfree is an online platform that promotes utmost transparency while enabling the e-mandate. Once you activate the automated setup you will not have to keep a track of its processing and functioning every month. Unless you disable the feature it will work incessantly as per the inbuilt commands.

Through this setup you will not miss to settle an impending payment and thereby build a good credit score. With an improved and reliable framework the process of digital payments has deduced the direct use of cash for initiating transactions.

If you have a UPI account (with any respective bank) you will be eligible to activate this convenient feature. The UPI autopay will act as a reminder to avoid delay in recurring payments. Interestingly the UPI mobile application is designed keeping in mind the user-interface and requirements.

This article discusses the merits and demerits of using UPI autopay. Keep reading to discover the possible flaws and advantageous factors attached to this system.

Merits of UPI Autopay

There are many benefits associated with the UPI autopay methods of nullifying accounts on time. From making easier payments to the process of automation to avoid discrepancy, UPI covers them all. As a customer you will enjoy the following benefits:

  1. You can automate monthly/yearly/quarterly or annual payments using your UPI account through any mobile application.
  2. The UPI-backed automated bill payment process will help you maintain a good pace with the predetermined time of making payments. Precisely, it will repeal any delay induced from your end.
  3. By adopting this timely payment procedure, you will be able to develop a rational credit score. A good credit score will allow lending authorities to grant you loan approvals in congruence to your repayment capacity of funds.
  4. The moment you create your UPI automatic payment of bills, the setup is activated throughout, unless you disable the feature. Interestingly, once you enable the reflexive deduction, you need not work upon it each month. Thus UPI autopay is secured and time consuming too!
  5. The UPI system meets the high standards of user’s requirements and keeps the payment procedure easy and simple. With no bewilderment you can directly log into your UPI account, enable the feature and allow the payments of recurring bills on time.
  6. The most eye-catching trait of autopay is that it allows its users to customize the payment as per their conditions.

Demerits of UPI autopay

Just like every coin has two sides, the UPI automated bill payment system also has some disadvantages. They are:

  1. The main backlash that you can face as an UPI user is failure of the payments due to lower account balance. If you could not upkeep a threshold balance in your account, your payment can possibly bounce.
  2. Since the transaction is through the digital means, there may be times when you receive a returned sum without being directed to the payee’s account. You can also face late fee issues in this interface.
  3. While setting up the account, you need to fill in the details and deductible amount vigilantly. Also, if you do not keep a check on the amount deducted at a predetermined time, you can face fraud or forgery.


Despite some demerits offered by the automatic payment system through UPI, a tinge of attention and meticulousness will help you override the odds.

Using this automated bill payment system you will be successful in taking the load off from your monthly bill payments.


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