UPI is evolving rapidly to enable new payment experiences. One such feature is the UPI One-Time Mandate (OTM), which allows merchants to block a certain amount in the customer’s bank account, the funds are not debited immediately but remain blocked until the merchant chooses to capture them. The debit may be full or partial, but can be captured only once. If no capture is made, the funds are automatically released back to the customer’s account at expiry
This ensures guaranteed availability of funds for merchants while offering customers a secure and transparent payment experience.
Use Cases:
- Hospitality – Hotels can block charges at booking and capture the final payable amount at check-out.
- Travel – Car rental platforms can block a deposit and later capture based on usage or damages.
- Insurance – Insurers can block the premium when a policy is applied and debit only after issuance (as per IRDAI guidelines).
- Ecommerce – Merchants can block payment at order placement and capture only on delivery or partial shipments.
Create a checkout session with OTM:
You can easily use the BoxPay Create Checkout Session to create a checkout session with OTM capabilities.