Google Pay and PhonePe are gearing up to offer recurring payment options in India through a partnership with National Payments Corporation of India (NPCI), the MoneyControl reported.
The new initiative will allow the users of Google Pay and PhonePe to choose the auto-debit facility for their monthly payments such as electricity and mobile bills, and EMIs, among others.
“Both Google Pay and PhonePe have started work on the recurring payments platform. They could be expected to go live within a month or so,” a source in the know of the development told the publication.
The report suggests that the product is currently under development and it will be tested by the firms before being rolled out the customers.
However, Google Pay and PhonePe did not respond to Moneycontrol’s request for comments.
Using the feature, UPI users can set recurring payment mandates by authenticating the transaction through the UPI pin.
The NPCI-developed instant payments system, as per regulatory norms, can allow recurring payments of only up to INR2,000 ($26.72).
Last month, NPCI launched the recurring payment facility in partnership with large banks including HDFC Bank, State Bank of India and Axis Bank.
Commenting on the development, another banker told the publication: “UPI auto-debit feature will transform recurring payment facilities and help merchants ease up the payments process, there are more than 10 banks which have started this. More will be joining the ecosystem.”