Image Source : INDIA TV UPI payments in India.
A recent survey conducted by LocalCircles reveals that approximately 75 per cent of Unified Payments Interface (UPI) users would stop using the platform if any transaction fees are introduced. The survey outlined the growing concern among users who rely on UPI for seamless and cost-free transactions, making it clear that additional charges could significantly impact its usage. The survey was conducted online between July 15 to September 20.
The survey further found that 38 per cent of respondents make over 50 per cent of their payments through UPI, preferring it over traditional digital methods such as debit and credit cards. This data reflected UPI’s increasing dominance as the preferred mode of payment in India, driven by its convenience and zero-fee structure. “Only 22 per cent UPI users surveyed are willing to bear a transaction fee on payments, 75 per cent of respondents stated that they will stop using UPI if a transaction fee is introduced,” the survey said.
How the survey was conducted?
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 per cent rise in the volume of transactions and 44 per cent 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.
(With inputs from PTI)
ALSO READ: Here’s what is UPI Number and how you can set it on your UPI account
