In India, Unified Payments Interface, often known as UPI, has become the most widely used mobile payment method for P2P and merchant transactions. In response to customer demand, Google is now stepping up with improved UPI features. Users in the South Asian nation can now purchase subscriptions through Google Play by using UPI.
Google Play Store and UPI Payments
Google stated on Tuesday that UPI Autopay is now available as a payment method on the Play Store, enabling customers in the nation to buy subscriptions using UPI. The update was released a few months after Google introduced UPI as a payment option for Google Play Store purchases of applications, games, and in-app content in 2019.
As per the sources, Google claimed that adding the additional payment option won’t result in any other billing system modifications. This indicates that it will continue to receive commissions from domestic subscription-based purchases made through the Play Store. Along with the currently accessible credit and debit card, net banking, direct carrier billing, and gift card options, the UPI Autopay option is also available.
Guidelines for UPI Autopay
UPI Autopay essentially simplifies the process of setting up subscriptions. Simply tap on the payment method in the shopping cart after choosing a subscription plan to buy, choose “Pay with UPI,” and then authorize the transaction in a UPI app that supports your device.
Google wants to make it possible for more users to use services that require subscriptions without just using credit and debit cards. The revenue of Google Play subscription-based businesses is also anticipated to rise due to this decision.
Over 170 markets currently accept payments on Google Play. The platform incorporates 300 regional payment options that are accepted in more than 60 nations. One of the newest payment methods is UPI. In India, the Google Play Store first offered UPI transactions in 2019.
Google recently gave developers the option to use an outside payment mechanism for apps that are not games. These app creators can avoid Google’s 30% share by sending users to an outside payment channel. It has been available in a few nations, including India.
UPI Autopay Service
The UPI Autopay service was introduced in 2020 by the National Payment Corporation of India, the organization supervising UPI, to enable recurring transactions. However, when businesses in the nation enabled UPI Autopay on their apps, such as Netflix and Disney+ Hotstar, it attracted little attention.
This stemmed from a Reserve Bank of India payment regulation that demands additional authorization for auto-recurring transactions totaling more than 5,000 Indian rupees ($62) from banks, financial institutions, and payment gateways.
Last month, India’s antitrust body fined Google $113 million for abusing the dominance of its Play Store there. It ruled that the corporation was not allowed to impose any restrictions on app developers’ use of external payment processing systems for in-app purchases and Play Store transactions. Google, therefore, stopped enforcing its rule mandating developers to use the Play Store’s billing mechanism for customer transactions in the nation.
In order to defy governmental pressure, the maker of Android is also trying different payment methods for the Play Store in nations like South Korea, Australia, Japan, and most recently the United States.
Furthermore, Apple offered UPI as a payment option to the Indian App Store last year. However, the Cupertino corporation only accepts payments made through Apple ID in the nation and does not enable UPI Autopay for recurring purchases.