Why Subscription Payments Were Always Difficult in India
UPI for subscriptions is in testing because recurring payments have never aligned well with how Indian consumers think about money. While subscriptions are common in global markets, Indian payment behaviour has historically favoured control, visibility, and manual confirmation. People are comfortable paying repeatedly, but only when each payment feels intentional.
In many Indian households, income arrives on fixed dates, expenses are carefully sequenced, and balances are monitored closely. Automatic deductions, especially those that occur without an explicit action, create anxiety. This is one reason why card-based subscriptions and auto-debit mandates never scaled as smoothly as one-time UPI payments.
For users, the core discomfort has always been uncertainty. When a subscription charge fails or succeeds silently, users worry about unexpected deductions or service interruptions. This discomfort feeds Recurring Payment Friction, where people prefer to manually pay each month rather than risk losing control over their bank balance.
Cards and mandates faced trust barriers
Card-based subscriptions required users to store card details and trust merchants with repeat access. For many users, especially outside metros, this felt risky. Concerns around misuse, hidden charges, and difficulty cancelling subscriptions limited adoption.
Bank mandates improved security but introduced complexity. Users had to approve mandates through unfamiliar interfaces, and failure messages were often unclear. When something went wrong, reversing or stopping a mandate could take days.
UPI succeeded because it preserved user control
UPI’s success came from its design. Every payment required explicit approval, clear confirmation, and immediate feedback. Users always knew when money left their account. This sense of control made UPI acceptable even for people new to digital payments.
However, this same strength became a limitation for subscriptions. Requiring manual approval every month breaks the promise of seamless recurring services. The challenge was to introduce automation without sacrificing trust.
Businesses struggled with unreliable collections
From the merchant side, subscription collections in India were unpredictable. Failed debits, expired cards, and mandate issues increased churn. Businesses often had to invest heavily in reminders, retries, and customer support to collect what should have been routine payments.
This created a mismatch: consumers wanted control, and businesses wanted certainty. UPI for subscriptions is being tested as a possible middle ground.
Insight: Subscription payments failed to scale in India not because people dislike subscriptions, but because they dislike losing visibility and control.How UPI for Subscriptions Is Being Designed
UPI for subscriptions builds on the existing UPI Autopay framework, but with tighter controls and clearer consent flows. The goal is not to make subscriptions invisible, but to make them predictable and reversible.
During the testing phase, the focus is on defining how consent is given, how limits are enforced, and how failures are communicated. Each of these elements directly affects trust.
Explicit mandate creation and limits
Users are required to approve a subscription mandate upfront. This approval clearly states the amount, frequency, and merchant. Monthly caps ensure that deductions cannot exceed what was agreed.
By anchoring subscriptions to explicit consent, the system tries to reduce the Mandate Trust Gap that plagued earlier auto-debit mechanisms.
Predictable deduction and notifications
UPI subscription flows include advance notifications before each debit. Users know when a charge is scheduled and can ensure sufficient balance. This reduces surprise failures and builds confidence.
If a deduction fails, the system communicates the reason clearly, rather than leaving users guessing whether the service or payment failed.
Simple pause and revoke options
One of the key design goals is easy control. Users can pause or cancel subscription mandates directly from their UPI app without contacting the merchant. This reversibility is critical for trust.
By keeping control within the familiar UPI interface, the system avoids forcing users into complex bank or merchant dashboards.
Gradual rollout across use cases
Testing is focused on predictable, low-risk subscriptions such as OTT platforms, utilities, insurance renewals, and education services. High-value or variable subscriptions are expected to follow later.
This staged approach allows networks and banks to study failure patterns and user behaviour before scaling widely.
Tip: UPI subscriptions gain trust fastest when users can see, pause, or cancel mandates as easily as they approve them.Where UPI Subscription Payments Can Still Fail
Despite careful design, UPI for subscriptions will face challenges rooted in Indian financial realities. Automation does not remove all friction; it shifts where friction appears.
Irregular balances and income timing
Many users do not maintain consistent balances throughout the month. Salaries, business income, and remittances arrive on specific dates. If a subscription debit is scheduled before funds arrive, failures become frequent.
Repeated failures can lead to service disruption and Payment Failure Fatigue, where users abandon subscriptions not because they do not want the service, but because payments feel unreliable.
Multiple subscriptions increase cognitive load
As users sign up for multiple services, tracking deductions becomes harder. Even with notifications, people may struggle to mentally account for several recurring payments, especially when amounts differ.
Without good visibility dashboards, subscriptions risk becoming invisible drains rather than intentional choices.
Customer support gaps remain
When something goes wrong, users still need clear support paths. If banks, apps, and merchants deflect responsibility, trust will erode quickly.
Testing phases must focus as much on dispute resolution as on successful debits.
Behavioural resistance to “silent money movement”
Culturally, Indian users are still cautious about money moving without an explicit tap. Even well-designed autopay systems may face resistance simply because they feel different from familiar UPI flows.
- Balance timing mismatches
- Subscription overload
- Unclear failure responsibility
- Behavioural hesitation around automation
What This Testing Phase Means for Indian Users
The testing phase of UPI for subscriptions is less about speed and more about alignment with Indian behaviour. Success depends on whether automation feels safe, reversible, and understandable.
Users get structured control, not blind automation
If implemented well, users will experience subscriptions as controlled commitments rather than open-ended deductions. Clear limits, notifications, and cancellation options reduce stress.
This moves subscriptions closer to intentional spending rather than background leakage.
Businesses get more predictable collections
For merchants, reliable UPI subscriptions reduce churn caused by payment failures. Clear mandates and retries improve revenue stability without aggressive follow-ups.
UPI expands beyond one-time payments
Subscriptions represent a shift in how UPI is perceived. From instant transfers, it evolves into a platform for long-term financial relationships, anchored in Consent Based Autopay.
This evolution must happen carefully. Over-automation risks breaking the trust that made UPI successful in the first place.
- Greater clarity on recurring spends
- Fewer missed payments due to reminders
- Easier cancellation and control
- Improved trust in digital subscriptions
- Slower but more stable adoption
UPI for subscriptions being in testing phase signals a cautious but important shift. If the system respects Indian spending psychology while solving operational issues, it can unlock sustainable subscription growth without sacrificing trust.
Frequently Asked Questions
1. What is UPI for subscriptions?
It allows recurring payments through UPI using pre-approved mandates with defined limits and controls.
2. Is UPI subscription payment automatic?
Yes, but only after explicit user consent and within approved limits.
3. Can users cancel UPI subscriptions easily?
Yes. Mandates can be paused or cancelled directly from UPI apps.
4. Why is UPI subscription testing important?
It ensures automation does not reduce user trust or payment reliability.
5. Will UPI subscriptions replace card-based subscriptions?
Not immediately. Adoption will depend on user comfort and reliability.