FinTech Glossary

Definition

Recurring payments are automated transactions where a customer authorises a business to collect payments at regular intervals, such as monthly or annually, without requiring manual approval each time.

How Recurring Payments Operate

Recurring payments are set up using mandates, saved cards, or UPI AutoPay. Once authorised, payments are automatically triggered based on a predefined schedule. The system checks validity, balance, and authentication rules before processing each cycle. Customers can usually pause or cancel mandates as per provider and regulatory guidelines.

Why Recurring Payments Matter

Recurring payments provide predictable cash flows and reduce collection effort for businesses. They are widely used in SaaS, subscriptions, utilities, and memberships. For customers, automation improves convenience and avoids missed payments. In India, regulated frameworks like e-mandates and UPI AutoPay have made recurring payments more secure and compliant.

Practical Business Use Cases

Recurring payments are commonly used for software subscriptions, OTT platforms, insurance premiums, loan EMIs, utility bills, and maintenance contracts. Businesses rely on them to improve retention, reduce churn, and stabilise revenue while minimising manual follow-ups and payment delays.