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Majority Against Fees: 75% of UPI users may stop using the service if transaction fees are introduced.
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Widespread Reliance: 38% of respondents use UPI for over half of their payment transactions, making it a preferred payment method.
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Consumer Concerns: Only 22% of users are willing to accept fees, fearing businesses will pass costs to consumers.
A recent survey by LocalCircles reveals that most users of India’s Unified Payment Interface (UPI) would abandon the service if transaction fees are introduced. UPI has become a crucial payment method in India, with 38% of respondents relying on it for over half of their transactions.
The survey, which collected responses from over 44,000 people across 325 districts, shows that users are heavily dependent on UPI. However, the introduction of transaction fees could disrupt this trend. Only 22% of users are willing to accept fees, citing concerns that businesses will pass costs to consumers.
The potential introduction of Merchant Discount Rate (MDR) for UPI transactions has sparked worries among users. Small businesses and consumers may find UPI less attractive if additional costs are incurred. The survey highlights the importance of maintaining UPI’s fee-free structure to preserve its widespread adoption.
As India’s digital payment landscape continues to evolve, policymakers must consider user sentiments when making decisions about UPI transaction fees. With the majority of users opposed to fees, any changes could significantly impact the service’s popularity.
