UPI, the preferred payment method for many Indians from various walks of life, is also being blamed for the increase in expenses due to its seamless and convenient nature. 13,303.99 million transactions worth Rs.19,64,464.52 were done via UPI in April 2024. The data of UPI is as given below.
Many Indians share the same experience, stating that the effortless nature of cashless transactions through UPI leads to unnecessary spending.
In a survey conducted by IIIT Delhi, one participant expressed their enthusiasm for UPI, saying, “I love UPI! It’s a fantastic way to spend money without the hassle of dealing with change or carrying cash. You can make payments ranging from just one rupee to Rs. 1 lakh in one go. It’s one of the best things in this progressive era.”
UPI has taken the lead among digital payment platforms, making transactions more convenient than ever before. While there are undeniable benefits, the downside is that many people end up overspending and finding themselves financially strained.
According to a recent study by Indraprastha Institute of Information Technology Delhi (IIIT Delhi), as many as 74% of Indians have reported overspending as a result of using UPI and other digital payment methods.
The survey results also revealed that 91.5% of respondents were satisfied with their overall UPI experience, and 95.2% found UPI to be convenient for making payments.
UPI simplifies payments by eliminating the need for physical currency and is even used for the smallest transactions, ranging from Rs 5 to Rs 10. Today, in India, UPI is accepted across the nation at all the shops – whether it’s grocery shop or any other shop. This has made the payments super smooth and super easy.
A significant 81% of people use UPI on a daily basis, with an average of 15.7% mentioning that their daily spending using UPI is around Rs 200. The reported daily spending amounts using UPI varied widely, ranging from Rs 50 to 1 lakh.
Unlike credit and debit cards, UPI transactions do not incur any processing or transaction fees for person-to-person (P2P) transfers. UPI has become omnipresent and commonplace in India. Moving forward, finding a balance between convenience and financial responsibility is crucial in this cashless era.
