A recent survey by LocalCircles revealed that approximately 75% of UPI users would likely stop using the service if transaction fees were introduced.
This underscores the strong preference for UPI’s current fee-free model and emphasizes the potential consequences that any changes could have on its widespread adoption.
Findings Of Survey
As per the response gathered, from over 42,000 individuals across 308 districts, it showed, that 38% of participants use UPI for more than half of their payment transactions, making it their primary method for digital payments. But, despite its popularity, only 22% of UPI users expressed a willingness to pay transaction fees, while 75% preferred to maintain the existing fee-free structure.
These results come around the time, when UPI is already witnessing a rapid growth, with transactions surpassing 100 billion for the first time in the 2023-24 fiscal year, reaching a total of 131 billion. The total value of these transactions also saw a significant rise, hitting Rs 199.89 trillion.
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But, as UPI becomes increasingly integral to daily transactions—from purchases to bill payments—any potential introduction of transaction charges could greatly impact its usage and the broader digital payments landscape in India.
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In light of these findings, LocalCircles plans to bring these concerns to the attention of the Ministry of Finance and the Reserve Bank of India (RBI) to ensure that UPI users’ voices are heard before any decisions regarding transaction fees are made.
