UPI Autopay

Overview

Decentro helps platforms collect payments periodically, whether daily, weekly, monthly, or even yearly, to reduce dependency on human intervention through the UPI stack. It also helps platforms mitigate risks due to a payer defaulting on a payment, etc., and reduce dependency on the payer for transferring or approving funds transfer for each transaction.

Decentro powers both the capabilities on its own RBI approved PA Escrow account or directly on the platform's bank account as a technology partner.

Decentro's mandates stack powers the below use-cases for platforms to leverage.

• EMI repayments: this allows lenders like LSPs, NBFCs, SFBs, and even banks to leverage the stack to collect EMIs from borrowers through the ENACH stack.
• Insurance premiums: this allows platforms like insurtechs, life, and general insurers to leverage the stack to collect premiums from borrowers through the ENACH stack.
• Investment use-cases: this allows investment platforms like Fintechs, RIAs, and even AMCs to leverage the stack to collect EMIs from borrowers through the ENACH stack.
• Subscription use-cases: this allows platforms, like consumer platforms, B2C marketplace platforms, ECOM, and even offline platforms, to leverage the stack to collect EMIs from borrowers through the UPI stack.

Flow

Decentro's mandates stack has largely 3 legs or steps in the flow.

• Mandate Registration: this step involves the payer setting up a mandate on the UPI stack and consenting to the mandate terms like amount, tenure, frequency, etc. Note that this doesn't debit the funds from the payer's account.
• Pre-debit notification: this step involves the payee/platform letting Decentro and the payer know the presentation date and amount well before the debit date. Note that this doesn't debit the funds from the payer's account.
• Mandate Execution: this step involves the payee/platform letting Decentro the amount to be debited on a specific date from the registered account. At this stage, the payer's bank account is debited for the amount presented for execution.

Decentro powers 3 types of flows on the mandate registration flow.

• Intent flow with QR: this flow doesn't require the payer to use an app. Decentro generates a dynamic QR, which can be displayed on an app or website, and the mandate can be registered on the app of the payer's choice.
• Intent flow with deep links: this flow requires the payer to use an app. Decentro generates dynamic deep links, redirecting the payer to the UPI app available on the payer's device and then redirected back to the platform's app after the mandate is registered or fails.
• Collect flow: this flow requires the payer to enter the VPA against which they want the mandate to be registered. The payer must navigate to the UPI app where the VPA is registered and authorize the request by entering the PIN.

Journey

Below is the flow recommended by Decentro for leveraging up the UPI stack.

• Decentro creates a payee (merchant) VPA to facilitate collections through the UPI stack. This is an offline process, and Decentro configures it at its end.
• The platform shares endpoints that can be configured at Decentro's end to trigger callbacks for registration and presentation. This can be shared with Decentro at [email protected].
• The platform asks for the payer's UPI handle (VPA) on its page/app or uses the intent flow to create a dynamic QR code, or uses the deep links provided by Decentro.
• The platform initiates the registration flow bypassing the payer's VPA using the Create Mandate API or just passing the mandate details for intent flow.
• In the case of intent flow, the payer navigates to the UPI app of their choice through redirection or scans the QR directly from their app and authorizes the request using their UPI MPIN on the app.
• Once the payer has completed the steps, Decentro triggers the UPI Auto-Pay Registration Callback to the platform's endpoint with the registration status.
• The platform can also check the registration status using the Get Mandate Status API using the Decentro transaction ID received from the registration API.
• The platform initiates the pre-debit notification to the payer using the Pre Debit Notification API at least 24 hours before the actual debit is scheduled.
• The platform initiates the debit request by triggering the Execute Mandate API, which will be passed to the destination PSP for actual debit.
• The actual debit happens from the payer's linked bank account if the account has sufficient balance and is active or there are no issues with the said account.
• Decentro triggers the UPI Auto-Pay Execution Callback API to the platform's configured endpoint once it receives the presentation status from its bank partner.
• The platform can also check the status of the mandate's presentation using the Get Mandate Execution Status API as a fall-back option.
• The platform receives the funds in their bank account as per the agreed upon with Decentro as per standard schedule.

Supported PSP Apps and Banks

📘

Note

Please note that most of the leading banks which have UPI enabled support UPI auto-pay. Also, all the leading PSPs like PhonePe, Paytm, GPay, and Amazon Pay now support UPI auto-pay as well.

The list of PSP apps and destination banks (where the payer has a bank account) that support the UPI Auto-pay stack can be found here.