‘Majority of people will stop using UPI if…’, survey reveals
- 73% of those surveyed indicated that they will stop using UPI if a transaction fee is introduced while 23% of the respondents said that they are willing to bear a transaction fee on payment.
A survey has revealed that a majority of the citizens will stop using the Unified Payments Interface (UPI) if a transaction fee is levied on it. According to an online survey by LocalCircles, a sizable number of respondents claimed that they have experienced a transaction fee being levied on their UPI payment once or more in the last one year, it added.
73% of those surveyed indicated that they will stop using UPI if a transaction fee is introduced while 23% of the respondents said that they are willing to bear a transaction fee on payment.
LocalCircles survey collected over 34,000 responses from citizens in over 364 districts, comprising 67% of male respondents and 33% of women.
"37% of UPI users surveyed claim that they have experienced a transaction fee being levied on their UPI payment once or more in the last 12 months," the survey report said.
In August 2022, the Reserve Bank of India (RBI) released a discussion paper proposing a tiered structure charge on UPI payments based on different amount bands. Following the RBI discussion paper, the finance ministry clarified that there was no proposal to levy charges on UPI transactions, LocalCircles said in its report on UPI transaction fees.
When asked about the frequency of UPI usage, the survey found that 1 in 2 UPI users conduct over 10 transactions every month.
The number of responses varied on each question asked in the survey.
According to the Central government, the UPI transactions in the country have grown from 92 crore in financial year 2017-18 to 8,375 crore in 2022-23 at a compound annual growth rate (CAGR) of 147% in terms of volume.
And, the value of UPI transactions has grown from ₹1 lakh crore in 2017-18 to ₹139 lakh crore in 2022-23 at a CAGR of 168%.
The Unified Payments Interface (UPI) is India's mobile-based fast payment system, which facilitates customers to make round-the-clock payments instantly using a Virtual Payment Address (VPA) created by the customer.
So far, several countries, including Sri Lanka, France, the UAE, Singapore, Sri Lanka, and Mauritius have partnered with India on emerging fintech and payment solutions.
Catch all the Business News , Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
MoreLess
First Published:4 Mar 2024, 01:00 PM IST
- Top Gainers
- Top Losers
- 52 Week High