What Are Automatic Payments?

Automatic payments allow businesses to collect recurring payments from customers on scheduled dates without requiring them to initiate every transaction manually.

They are useful for businesses that collect monthly fees, instalments, subscriptions, loan repayments or other recurring payments.

In India, businesses can automate eligible recurring collections using payment methods such as UPI AutoPay and eNACH.

How to Collect Automatic Payments in India

Follow these four steps to automate recurring payments.

1. Choose a recurring payment method

Select a payment method based on your customers, payment frequency and collection requirements.

• UPI AutoPay: Enables customers to authorise recurring payments through a supported UPI app.

• eNACH: Supports eligible recurring debits from bank accounts.

• Payment links: Suitable for one-time payments, but customers generally need to complete each payment manually.

Learn more about UPI AutoPay for businesses.

2. Get customer authorisation

Set up a payment mandate with the agreed amount, frequency and applicable terms. Customers must approve the mandate before recurring collections can begin.

3. Schedule automatic collections

Once the mandate is active, configure collections according to the agreed payment schedule and applicable rules.

Successful payments depend on factors such as mandate status, available funds and bank processing.

4. Track payments and failed transactions

Monitor successful collections, pending payments and failed transactions. Set up appropriate reminders and follow-ups for payments that require attention.

A collection platform can help organise these workflows and simplify reconciliation.

Which Businesses Should Automate Payments?

Automatic payment collection is particularly useful for:

• Educational institutions: Monthly tuition fees and course instalments.

• NBFCs and lenders: Eligible recurring loan repayments.

• Credit cooperative societies: Recurring deposits and scheduled collections.

• SaaS businesses: Monthly and annual subscriptions.

• Membership businesses: Recurring membership fees.

For a detailed overview, read our guide to automatic fee collection for educational institutions.

How SlashCollect Helps Businesses Collect Automatic Payments

SlashCollect helps businesses manage recurring and scheduled payment collections through UPI AutoPay, eNACH and structured collection workflows.

Businesses can organise payment schedules, track collection statuses, follow up on failed transactions and manage reconciliation.

Instead of repeatedly asking customers to make payments, businesses can automate eligible collections and focus on transactions that need attention.

Want to automate your payment collections?

Book a demo with SlashCollect to discuss your business requirements.

Frequently Asked Questions

Can I collect automatic payments through UPI?

Yes. UPI AutoPay allows customers to authorise eligible recurring payments through supported UPI applications.

Do customers need to approve automatic payments?

Yes. Customers must authorise the recurring payment mandate before automatic collections can begin.

Can automatic payments fail?

Yes. Insufficient funds, inactive mandates, bank responses and other processing issues can cause failures. Businesses should monitor failed transactions and follow up appropriately.

What is the best way to automate payments for a business?

Choose a solution that supports your required payment methods, recurring schedules, payment tracking, failed-payment follow-ups and reconciliation.

Conclusion

Automatic payment collection helps businesses reduce manual follow-ups and manage recurring payments more efficiently. With UPI AutoPay, eNACH and the right collection platform, businesses can build a more structured payment process.

Explore SlashCollect to automate recurring collections and improve payment tracking.