India's payments landscape features four live methods for businesses to digitally collect recurring payments. RBI has recently eased norms on 2FA (two factor authentication) for recurring transactions on cards, whilst eMandates do not have any 2FA requirement for recurring transactions, and digital wallets generally have in-built 2FA.
|
NACH Debit eMandates |
Direct eMandates |
Card standing instructions |
Digital wallets autopay |
UPI recurring mandates |
|
|
Status |
NPCI API: Live with 25 banks, more coming soon |
Live with some leading banks, including SBI, HDFC Bank, ICICI Bank, Axis Bank |
Live with debit and credit cards of some leading issuers |
Live with various prepaid payment instruments |
Proposed by NPCI, pending approval by RBI; UPI has 100+ banks |
|
Clearing system |
NPCI NACH |
n/a |
Card networks |
n/a |
NPCI IMPS |
|
Modes of authorisation |
Netbanking login/debit card and PIN |
Netbanking login |
CVV and OTP |
Phone unlock, password, PIN, OTP |
UPI PIN |
|
User experience |
Redirect flow to NPCI and destination bank |
Redirect flow to bank |
Redirect flow to issuer for 2FA |
In app |
Switch to UPI app, or auto-switch with intent flow |
|
Population reach |
~400mn |
~200mn |
~40mn |
~300mn |
~50mn |
|
User adoption |
~30mn active mandates |
Not known |
Not known |
Not known |
n/a |
|
Pre-requisites |
Netbanking login or debit card and PIN |
Bank account with a live bank |
Debit or credit card issued by a live bank |
Smartphone and mobile app of a digital wallet |
Smartphone and UPI app of a UPI-enabled bank |
|
Data required from payer |
Bank account details |
Bank account details |
Card details |
Mobile number |
UPI VPA |
|
Activation time |
One working day |
Instant |
Instant |
Instant |
Instant |
|
Revocable by |
Creditor only |
Creditor or debtor |
Creditor or debtor |
Debtor only |
Creditor or debtor |
|
Cancellable by |
Creditor or debtor |
Creditor or debtor |
Creditor or debtor |
Debtor only |
Creditor or debtor |
|
Aggregator model available |
Yes |
Yes |
Yes |
No |
Yes |
|
Pricing model |
Fixed |
Fixed |
Percentage |
n/a |
Percentage |
|
Typical pricing |
Rs 5 to Rs 20 per mandate, and Rs 2 to Rs 7 per transaction |
Rs 5 to Rs 20 per mandate, and Rs 2 to Rs 7 per transaction |
1% to 2% (debit card fees for transactions under Rs 2000 are temporarily waived) |
n/a |
MDR |
|
Payment clearing |
RTGS working day |
Any day |
Any day |
Any day |
Any day |
|
Initial creditor |
Own account (if direct) else aggregator nodal account |
Own account (if direct) else aggregator nodal account |
Aggregator nodal account |
Own account |
Own account (if direct) else aggregator nodal account |
|
Settlement time |
Same day if own account, else 1-2 working days if via aggregator |
Same day if own account, else 1-2 working days if via aggregator |
1-4 working days via aggregator |
Instant if own account, else 1-2 working days if via aggregator |
Instant if own account, else 1-2 working days if via aggregator |
|
Settlement reconciliation |
Bulk payout |
Bulk payout |
Bulk payout via aggregator |
Individual payout if direct, else bulk payout if via aggregator |
Individual payout if direct, else bulk payout if via aggregator |
|
Main use cases |
B2C: Financial services (mutual funds for SIPs, lenders for EMIs, insurance companies for premiums etc.) |
B2C: Financial services, tech companies |
B2B, B2C |
B2C, C2C |
B2C, C2C |
|
Developer tools |
Aggregator APIs, bank SFTP |
Aggregator APIs, bank APIs |
Aggregator APIs |
Not known |
Aggregator APIs |
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