Merchants Embrace UPI Autopay Despite Low Success Rates

• Merchants favor UPI Autopay for lower costs, massive scale, and wide accessibility, despite its success rate dropping from 50% to 30% between Jan 2024 and Nov 2025.
• UPI Autopay transactions grew tenfold during this period, with companies like Chana Jor and Jar relying heavily on it for recurring payments.
• Autopay democratizes access, reaching 40 crore UPI users compared to 5 crore credit card users, and enables payments for EMI loans and SIPs.
• Reasons for low success rates include insufficient funds, incorrect mandates, user fear of auto-debit, and unclear bank messaging, not technical issues.
• NPCI is implementing measures like pre-debit notifications and automatic retries to improve success rates and build user trust.

Why It Matters: Merchants prioritize UPI Autopay's reach and low cost over its current lower success rate.