NPCI Plans Major Change to UPI AutoPay
The National Payments Corporation of India (NPCI) is preparing to make UPI AutoPay mandates portable across different UPI apps, potentially making it much easier for users to switch between payment platforms.
Under the proposed interoperability framework, users could move eligible recurring-payment mandates from one UPI app to another without cancelling the existing mandate and creating a new one.
The development could reduce user lock-in and increase competition between India’s major UPI platforms.
What Will Change for Users?
Currently, a user who has recurring payments linked to one UPI application may face considerable friction when switching to another app.
For example, someone using PhonePe for an OTT subscription, insurance premium or SIP may need to cancel the existing AutoPay mandate and set up a fresh one after moving to another UPI platform.
The proposed system would eliminate that requirement for eligible mandates.
Users could initiate the transfer themselves and authenticate the process using their UPI PIN.
OTT Subscriptions, Insurance and EMIs Could Be Covered
The portability feature could apply to a wide range of recurring payments.
These include OTT subscriptions, insurance premiums, systematic investment plans, loan EMIs and utility bills.
This is significant because recurring payments are increasingly becoming a regular part of consumers’ digital financial lives.
Instead of remembering multiple payment dates and manually completing transactions, UPI AutoPay allows users to authorise recurring debits in advance.
NPCI already supports AutoPay for several recurring-payment categories, including bills, EMIs, insurance, mutual funds and entertainment subscriptions.
Why This Could Shake Up UPI Competition
The change could remove an important but relatively invisible reason why users remain with particular UPI apps.
A person may prefer another payment application but hesitate to switch because several recurring mandates are already connected to the existing platform.
If those mandates become portable, switching between apps could become considerably easier.
This could particularly benefit smaller UPI applications, which may be able to attract users without forcing them to rebuild their entire recurring-payment setup.
PhonePe, Google Pay and Paytm Could Face More Competition
India’s UPI market is dominated by a handful of major platforms, including PhonePe, Google Pay and Paytm.
The portability of recurring mandates would reduce the importance of simply retaining customers because their AutoPay arrangements are already established on a particular application.
Instead, apps may have to compete more aggressively on user experience, reliability, features, customer service and other factors.
However, the change is unlikely to immediately transform market shares. Its larger impact could come gradually as consumers become more comfortable switching between platforms.
Merchants Could Also Benefit
NPCI is reportedly planning portability not only for consumers but also for merchants.
Businesses could potentially move existing AutoPay mandates between payment service providers when they change payment gateways or other payment partners.
Currently, changing a payment service provider can create complications because existing mandates may remain tied to the previous provider.
Portability could reduce this dependency and make it easier for businesses to change providers without asking customers to recreate their recurring-payment instructions.
UPI AutoPay Usage Is Growing Rapidly
The timing of the proposed change is significant because UPI AutoPay usage has been increasing rapidly.
According to the report, the top 10 banks processed nearly 1.8 billion UPI e-mandate transactions in July 2026, more than three times the approximately 585 million recorded in July 2025.
As recurring digital payments become more common, the ability to manage and transfer mandates efficiently becomes increasingly important.
Based on NPCI’s Earlier Framework
The proposed portability system is not an entirely new concept.
It builds on NPCI’s UPI AutoPay enhancement framework issued in 2025, which provided for interoperability of mandates across UPI applications.
The feature is now reportedly being prepared for implementation and could receive attention at the upcoming Global Fintech Fest.
NPCI has not yet publicly confirmed all details of the reported rollout.
A More Open UPI Ecosystem
The proposed move could make UPI’s recurring-payment ecosystem more open by separating the mandate itself from the application through which consumers manage it.
That could reduce dependence on individual platforms and make competition more focused on the quality of the service rather than the difficulty of switching.
For consumers, the biggest advantage would simply be convenience: changing a UPI app would no longer necessarily mean rebuilding a list of recurring payments from scratch.
What It Means for the Future
If implemented successfully, UPI AutoPay portability could become an important step in making India’s digital-payment infrastructure more interoperable.
Consumers would gain greater freedom to choose their preferred UPI app, while merchants could gain greater flexibility in choosing payment service providers.
For UPI platforms, meanwhile, retaining users could become more challenging because recurring-payment mandates would no longer act as a barrier to switching.
The result could be a more competitive ecosystem where convenience, reliability and innovation matter more than platform lock-in.
Summary
NPCI is preparing to make eligible UPI AutoPay mandates portable across UPI apps, allowing users to shift recurring payments without cancelling and recreating them. OTT subscriptions, insurance, SIPs, EMIs and utility payments could be covered. The proposed system could reduce user lock-in, help smaller UPI apps compete and allow merchants to transfer mandates between payment providers when changing gateways.
