UPI Autopay vs. Traditional Recurring Payment Methods: Which is Better?

Recurring payments aren’t new; banks and cards have enabled them for decades. What’s new is how UPI Autopay by PhonePe PG brings transparency, flexibility, and real-time control to the same old idea. It’s not a new invention, it’s a smarter evolution.

So, what is UPI Autopay? It’s a feature built on the UPI platform that lets users set up automatic payments for subscriptions, bills, or services directly with full control via their UPI app. Traditional recurring payments often depend on card mandates or bank instructions, which, while reliable, involve significant friction during setup especially when compared to the seamless experience offered by UPI AutoPay.

Read More: What is UPI AutoPay?

Difference Between UPI Autopay and Traditional Recurring Payment Methods

UPI Autopay and traditional payment methods may serve the same purpose, but the way they function can feel very different.

Parameter	UPI AutoPay	Traditional Recurring Payments
Setup	Users can set up mandates directly from their UPI apps. It’s a simple & intuitive process that just takes a few taps.	Users often need to enter card or bank details, which can slow them down or lead to drop-offs.
Control	Users have full control over their payments – they can pause, cancel, or modify anytime. This not only enhances the customer experience but also helps reduce churn.	Users may need to contact support or visit a bank to make changes, creating friction and making the process time-consuming.
Security	Users authorize the mandate using their MPIN during setup, post which payments are debited automatically making the experience both secure and convenient, and encouraging more users to opt in.	They typically rely on a one-time setup and offer limited visibility, which can lead to lower user trust and reduced willingness to opt in.
Flexibility	Supports flexible billing cycles daily, weekly, monthly, and more and makes it easier to apply discounts or adjust debit timing.	Often used for fixed monthly amounts, which may not suit all pricing models.
Payment Success Rate	Fewer failed payments, as UPI is directly linked to the bank accounts. This means steady cash flow and fewer interruptions.	While it offers good payment success rates, there can still be failures due to card expiry or stolen cards.

Read More: What is Recurring Payment? Definition, Types and How it Works

What Are Their Challenges and Drawbacks

Recurring payment systems are effective, but each model has its own challenges. Identifying these pain points is key to selecting the right solution for each use case.

Parameter	UPI AutoPay	Traditional Recurring Payments
Setup Experience	Setup is quick within the app, but users are redirected to the TPAP for approval, which can introduce an extra step in the process that might feel slightly disconnected.	The process can be slow and may involve multiple steps such as filling forms and entering card details, leading to potential dropoffs.
Payment Success Rates	Real-time payments reduce failures, but success depends on UPI network availability and the responsiveness of the user’s bank.	While success rates are high initially, card expiry, delays, or ECS bounce can still lead to failed payments and revenue gaps.
User Trust & Control	While users technically have control over their mandates, cancellation flows are often hidden or gated behind friction-like questionnaires making it harder for users to manage mandates when they want to.	Users may not be aware of upcoming charges or how to cancel the mandates, affecting the overall customer experience.
Compliance & Cost	Simpler structure with fewer intermediaries, but newer frameworks may still require internal adaptation.	Involves more layers of card networks, issuers, banks which increases cost and complexity.
Market Reach	UPI has excellent reach in India, with strong penetration in Tier 2/3 cities. However, its reach is limited to domestic users.	Works globally and with loyal users of cards and net banking, but has lower penetration in mobile-first India.

Read More: UPI AutoPay- Shaping India’s Subscription Business Landscape

Conclusion

UPI AutoPay is growing rapidly in India, powered by the increasing comfort with UPI and digital-first payment experiences. Its success has sparked interest in other markets too, with potential for broader adoption as UPI expands globally.

At the same time, the subscription economy is booming. As more businesses shift toward recurring revenue models, the need for seamless, customer-friendly payment options is only rising. Payment technologies are evolving fast not just with UPI AutoPay, but also through improvements in traditional models, such as card tokenization, enhanced customer consent flows, and better transparency regulations.

Still, there is no one-size-fits-all solution. The right recurring payment method depends on your business model, ticket size, and audience.

Looking ahead, we are likely to see a future where multiple systems co-exist – with businesses offering customers a choice of UPI AutoPay, card auto-debits, and other payment modes through hybrid models.

For online businesses looking to future-proof their recurring payment stack, UPI AutoPay by PhonePe Payment Gateway is a solution built to deliver fast integration, high success rates, customer trust, and scalability for the Indian market. It’s an essential tool to power the next generation of subscriptions and digital commerce.