UPI Transaction Fee: 73% of users may stop using UPI survey says

UPI transactions are one of the prime pillars behind the digital payments culture in India. After the launch of UPI, there was a sudden surge in digital transactions because of the ease and flexibility to pay anyone, anytime. But now there is a survey that will shock you and what will happen to transaction fees would be charged on UPI transactions. The detailed analysis and the result of an online survey conducted by LocalCircles.

The report of the online survey by LocalCircles has been shared on Sunday 3rd March 2024. As per the LocalCircles, the survey received over 34,000 responses from people from over 364 districts of which 67 percent were men and 33 percent were women.

This is just a small survey but likely enough to tell the reaction of people if the government implements transaction fees on UPI. The number of active users of UPI has continuously risen over the years and it is gaining users because of the ease of making payments digitally with any extra charges.

Through the UPI transactions the number of online transactions like ordering food, doing recharges, payments to nearby stores, and much more are risen with an expected surge in the past years.

As per the result of this survey by LocalCircles, 73 per cent of people indicated that they will stop using UPI if the transaction fee is introduced. While on the other side, 23 per cent of the people are ready to bear a transaction fee on UPI transactions.

Authorities also know the rising demand for UPI transactions in the country and recently RBI announced the increase of UPI transaction limit up to ₹5 lakh to hospitals and educational institutes in December 2023.

Recently, consumers have seen a 1.1% interchange fee on their certain merchant UPI transactions above ₹2,000, made using prepaid payment instruments (PPI) such as online wallets.

Will you continue doing UPI transactions even after the implementation of transaction fees? Share your thoughts below the article.