Majority of users say they will stop using UPI if transaction fee is levied, notes a LocalCircles survey
Sep 22, 2024, 13:17 IST
Around 75 % of UPI users will stop using it if any transaction charge is levied on the service, a survey by LocalCircles said today. The survey found that 38% of users make over 50% of their payment transactions via UPI instead of debit, credit, or any other form of digital transaction.
"Only 22 % UPI users surveyed are willing to bear a transaction fee on payments, 75% of respondents stated that they will stop using UPI if a transaction fee is introduced," the survey said.
The survey comprising three broad areas, claims to have received 42,000 responses from 308 districts but the number of replies on each question varied. The questions regarding transaction fee on UPI received 15,598 responses.
The National Payments Corporation of India (NPCI) posted a record 57% rise in the volume of transactions and 44% rise in value in the 2023-24 fiscal year, compared to the previous fiscal year.
For the first time UPI transactions crossed 100 billion and closed at 131 billion in a financial year, compared to 84 billion in 2022-23. In value terms, it touched Rs 199.89 trillion, compared to Rs 139.1 trillion, the report said.
The survey found 37 % of respondents shared UPI transaction accounts for more than 50 % of their total payment in value terms.
"With UPI rapidly becoming an integral part of nearly 4 in 10 consumers, there is strong resistance to any kind of direct or indirect transaction charges being imposed. LocalCircles will escalate the findings of this survey with the Ministry of Finance and Reserve Bank of India (RBI) so that the pulse of the UPI user is taken into account before any MDR charges are permitted," the survey report said.
The survey was conducted online, between July 15 to September 20.
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"Only 22 % UPI users surveyed are willing to bear a transaction fee on payments, 75% of respondents stated that they will stop using UPI if a transaction fee is introduced," the survey said.
The survey comprising three broad areas, claims to have received 42,000 responses from 308 districts but the number of replies on each question varied. The questions regarding transaction fee on UPI received 15,598 responses.
The National Payments Corporation of India (NPCI) posted a record 57% rise in the volume of transactions and 44% rise in value in the 2023-24 fiscal year, compared to the previous fiscal year.
For the first time UPI transactions crossed 100 billion and closed at 131 billion in a financial year, compared to 84 billion in 2022-23. In value terms, it touched Rs 199.89 trillion, compared to Rs 139.1 trillion, the report said.
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"With UPI rapidly becoming an integral part of nearly 4 in 10 consumers, there is strong resistance to any kind of direct or indirect transaction charges being imposed. LocalCircles will escalate the findings of this survey with the Ministry of Finance and Reserve Bank of India (RBI) so that the pulse of the UPI user is taken into account before any MDR charges are permitted," the survey report said.
The survey was conducted online, between July 15 to September 20.