Around 75% of UPI users will stop using it if any transaction charge is levied on the service, a survey by Localcircles said on Sunday.
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% of 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 fees on UPI received 15,598 responses.
The National Payments Corporation of India (NPCI) posted a record 57% rise in the volume of transactions and a 44% rise in value in the 2023-24 fiscal year, compared to the previous fiscal year.
UPI transactions crossed 100 billion for the first time 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 that 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.
UPI Transaction Limit Increased To Rs 5 Lakh For These Payments
The popularity of UPI payments is increasing across the country with more people joining the system every day. Whether it’s purchasing everyday items or sending money to someone, UPI has emerged as a convenient and go-to payment option for all of us.
NPCI said in one of its circulars that they have decided to raise the transaction limit for UPI payments to Rs 5 lakh. However, this feature will be available only for specific payments. Earlier, the limit for a single transaction was Rs 1 lakh while for transactions related to capital markets, collections, insurance and foreign inward remittances, the daily limit was Rs 2 lakh.
The three types of transactions in which you can pay any amount up to Rs 5 lakh are:
- Tax Payment
- Payments to hospitals and educational institutions
- Payments for investment in IPOs and other RBI’s Retail Direct Scheme
UPI Continue Digital Payment Adoption
In the latest report, Amazon India said that digital payment methods are on the rise, with 64% of consumers choosing UPI for online festive shopping. In addition, 82% indicated that UPI is their favoured digital payment method for earning rewards and cashback, especially during the festive season.
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