Majority of users say they will stop usingUPI if transaction fee is levied: Survey

 

 

AROUND 75 percent UPI users will stop using it if any transaction charge is levied on the service,asurvey by Local circles said on Sunday. The survey found that 38 per cent of users make over 50 per cent of their payment transactions via UPI instead of debit, credit or any other form of digital transaction. “Only 22 per cent UPI users surveyed are willing to bear a transaction fee on payments, 75percentofrespondentsstated that theywill stopusingUPI if a transaction fee is introduced,” the survey said. Thesurveycomprising three broad areas claims to have received42,000responses from 308 districts but thenumber of replies on each question varied. The questions regarding transaction feeonUPI received 15,598 responses.

 

The National Payments Corporation of India (NPCI) posteda record 57percentrise in the volume of transactions and 44 per centrise in value in the 2023-24 fiscal year, compared to theprevious fiscalyear. For the first time UPI transactionscrossed 100billion and closed at 131 billion ina financial year, compared to 84 billionin 2022-23.Invalue terms, it touched Rs 199.89 trillion, compared to Rs 139.1 trillion, the report said. Thesurvey found37percent of respondents shared UPI transaction accounts for more than 50 per cent of their total payment in value terms. “WithUPI rapidlybecomingan integral part of nearly 4 in10 consumers, there is strongresistance to any kind of direct orindirect transactionchargesbeing imposed. LocalCircleswill escalate the findingsof thissurvey with the Ministry of Finance and Reserve Bank of India (RBI) so that the pulse of the UPI user is taken intoaccount before any MDRchargesarepermitted," thesurvey report said.The surveywasconductedonlinebetweenJuly15 to September 20.