UPI Transaction Fees: 75% Say 'Bye-Bye' to Fees—Survey Reveals Shocking Truth! - Read Now

The survey indicated that 38% of users prefer UPI for 50% of their payment transactions over debit or credit cards. However, only 22% of users are willing to bear the burden of any transaction fees.

By Aayushi Dubey Sep 23, 2024, 15:24 IST

UPI Transaction Fees: A recent survey by LocalCircles has revealed alarming insights about the future of Unified Payments Interface (UPI) usage in India. If any transaction fees are introduced, a staggering 75% of UPI users would stop using the service altogether. This finding highlights the potential backlash against monetizing one of the most popular digital payment systems in the country.

The survey indicated that 38% of users prefer UPI for 50% of their payment transactions over debit or credit cards. However, only 22% of users are willing to bear the burden of any transaction fees. This raises serious concerns about the accessibility and affordability of digital payments for everyday users.

Conducted across 308 districts, the survey gathered over 42,000 responses, focusing on the implications of transaction fees on UPI usage. Notably, the National Payments Corporation of India (NPCI) reported a remarkable 57% increase in transaction volume and a 44% increase in transaction value for the fiscal year 2023-24, with UPI transactions surpassing 100 billion for the first time.

The survey findings show that UPI is becoming a crucial part of payment methods for four out of ten consumers. LocalCircles plans to share these insights with the Ministry of Finance and the Reserve Bank of India (RBI) to ensure that the voices of UPI users are heard before any decisions regarding merchant discount rates (MDR) are made.

As digital payment methods evolve, understanding user sentiment will be key to maintaining trust and usability in the UPI ecosystem.