- Day 1Automatic retryOften a temporary failure38
- Day 3Email and in-app link to update paymentExpired card, new UPI app21
- Day 5Second retryAfter most salary days9
- Day 7Banner inside the productSeen by active users6
- Day 14Downgraded or cancelledNot recovered26
Industry · startups and SaaS
Winning the customer once. Getting paid every month.
For a subscription business, the checkout is the easy part. Revenue depends on renewals going through month after month, under India's rules for recurring payments, and on catching the ones that don't.
Pricing models and what they need from payments
How you charge decides how you collect. Pick the model first, then check the payment side can support it without manual work every month.
| Model | Charge | Payment needs |
|---|---|---|
| Flat monthly | Same amount each month | A mandate; the simplest to run |
| Per seat | Changes as users are added or removed | Proration and mid-cycle changes |
| Usage-based | Varies with consumption | A variable mandate with a maximum, and clear invoices |
| Annual upfront | One larger payment a year | Authentication for larger debits; renewal reminders |
| Invoice on terms | Enterprise contracts | Invoices with references; bank transfers |
Recurring payments under India's rules
In India, recurring card and UPI payments run on e-mandates under RBI's framework. The customer registers the mandate with authentication, is notified before each debit, and can cancel it. For debits above set amounts, the customer has to authenticate again, which matters for annual plans and large usage bills.
Bank-account mandates through NACH suit B2B customers and larger amounts. Build your billing around these rules from the start, rather than assuming a card can simply be charged whenever you like.
Register with authentication. At sign-up, with the maximum amount and frequency clear.
Pre-debit notice. The customer is told before each debit.
Re-authentication for larger debits. Plan for it on annual and high-usage bills.
Easy cancellation. Customers can cancel the mandate, and your product should reflect it.
- Subscription payments guide · NACH
Recovering failed renewals
Involuntary churn (customers lost because a payment failed, not because they chose to leave) is one of the cheapest problems a subscription business can fix. The customer still wants the product; the payment just needs a second chance.
Retry at the right time
A day later, and again after common salary dates.
Tell the customer
A short, friendly message with a link to update payment.
Grace, not a wall
Keep access for a few days while payment is sorted.
Update, don't re-sign
Let customers switch cards or UPI in two taps.
How many retries are allowed, and when, depends on the payment method and the rules for it. Check with your provider.
Selling to businesses: invoices and approvals
As a startup moves upmarket, customers stop paying by card at sign-up and start asking for invoices, purchase orders and credit terms. Payment then depends on their approval process, and the work shifts to invoicing correctly and matching transfers to invoices.
Put a unique reference or account number for each customer on every invoice, so bank transfers identify themselves, and chase before the due date rather than after.
Correct invoice first time
Their PO number, legal name and tax details.
A reference per customer
A virtual account or payment link on the invoice.
Follow the approval
Know who approves and when payment runs.
Upgrades, downgrades and refunds
Plan changes create small charges and credits that customers scrutinise. Decide your rules (prorate now or at renewal; refund unused time or give credit) and show the customer the amount before they confirm. Refunds go back to the original method through your provider, tied to the payment they reverse, so the customer's statement and your books tell the same story.
Customers outside India
Software sells across borders from day one. Taking payment from customers abroad depends on your provider supporting international payments for your business, and money received from abroad for services comes with documentation and foreign exchange requirements handled through your bank.
Before selling abroad
- Confirm your provider supports it for your business
- Decide currencies and pricing per market
- Ask your bank and adviser what documentation applies
Where Peneu fits
Peneu's pricing pagelists a free Starter plan for API access, with transaction and usage charges separate. This page doesn't name any startup using Peneu. Which products fit your business is confirmed during onboarding.
Startup and SaaS payment questions
How do recurring card and UPI payments work in India?
Through an e-mandate the customer registers with authentication. Under RBI's e-mandate framework, the customer is notified before each debit, and debits above set amounts need the customer to authenticate again. The subscription payments guide has the details.
Why do so many renewals fail?
Expired or replaced cards, cancelled mandates, insufficient balance on the day, and debits that needed authentication the customer didn't complete. A recovery sequence of retries, reminders and an easy way to update payment details recovers many of them.
Should B2B customers pay by card or invoice?
Smaller teams often prefer a card or UPI mandate; larger companies usually want an invoice they can route through approval and pay by bank transfer. Offering both, with a reference on every invoice, suits most B2B SaaS.
How should upgrades and downgrades be charged?
Decide your proration rule (charge the difference now, or from the next cycle) and apply it consistently, showing the customer the amount before confirming. Mid-cycle charges on a mandate follow the same notice and authentication rules as renewals.
Can we accept payments from customers outside India?
Usually, through a provider that supports international payments for your business. Money received from abroad for software services has documentation and foreign exchange requirements handled through your bank; ask your adviser what applies.
Does Peneu work with startups?
Peneu's pricing page lists a free Starter plan for API access, with transaction charges separate. Which products fit your startup is confirmed during onboarding.
Last reviewed . Examples, amounts and screens marked illustrative are not Peneu figures.