Indian consumers spread their spending across UPI, debit and credit cards, internet banking, and digital wallets.

Four structural factors make recurring billing particularly challenging:

1. Low credit card adoption Debit cards and UPI are much more widely used. Global models built primarily around credit cards are not well suited to the Indian market.
2. Strict RBI authentication requirements Issuers are required to send notifications 24 hours before a recurring charge. Additional authentication (AFA) is required for transactions above the applicable threshold.
3. Inconsistent approval rates Some banks have low auto-debit approval rates, making renewal performance unpredictable.
4. Cross-border transaction challenges Transactions processed in US dollars may face higher decline rates than transactions processed in the local currency.

The first step is to localize your payment infrastructure. For the Indian market, it is important to support not only cards but also popular local payment methods, including UPI.

Second, use card tokenization. This allows businesses to securely work with payment credentials without storing the original card details and helps create a more reliable recurring payment process.

Third, implement smart payment retries. When a payment is declined, the customer shouldn’t immediately be considered lost. The decline reason should determine the next step: retry the transaction later, offer another payment method, or ask the customer to update their payment details.

Fourth, notify customers about upcoming charges in advance. Clear notifications help prevent unexpected payment failures while also helping businesses comply with local regulatory requirements.

Fifth, automate payment reconciliation. All payments, refunds, and recurring charges should be accurately reflected in a single system. This reduces manual work and makes it easier to identify errors.

It is important to consider more than just transaction fees. Key factors include support for local payment methods, transaction reliability, security, automation, and reporting. For international companies, it is especially important to choose a solution that supports multiple markets and allows the payment process to be adapted to local requirements. The Indian market offers huge opportunities for global subscription services, but it requires a localized approach to payments. To reduce payment declines and retain customers, companies need to account for the popularity of UPI, the specifics of recurring payments, regulatory requirements, and diverse payment preferences.

EinPays helps international companies enter the Indian market without the headache and revenue losses.