A recent survey by LocalCircles has revealed significant concerns among UPI (Unified Payments Interface) users regarding potential transaction fees. According to the survey, around 75% of UPI users said they would stop using the service if any transaction charges were introduced.
Key Findings of the Survey
The survey highlighted several important points about how users engage with UPI:
- Usage of UPI: About 38% of respondents reported that more than half of their payment transactions are made through UPI, choosing it over debit, credit, or other digital payment methods.
- Willingness to Pay Fees: Only 22% of users indicated they would be willing to accept a transaction fee for UPI payments. This indicates a strong reluctance among users to bear any additional costs.
The survey gathered responses from 42,000 individuals across 308 districts, with 15,598 responses specifically addressing the question about transaction fees.
Growing Popularity of UPI
The popularity of UPI has soared in recent years. The National Payments Corporation of India (NPCI) reported a 57% increase in transaction volume and a 44% increase in transaction value for the 2023-24 fiscal year compared to the previous year. For the first time, UPI transactions surpassed 100 billion, reaching a remarkable 131 billion, with a total transaction value of ₹199.89 trillion.
Notably, 37% of survey respondents stated that UPI accounts for over 50% of their total payment transactions in value.
Resistance to Transaction Charges
With UPI becoming a vital part of everyday transactions for nearly 40% of consumers, there is considerable resistance to any form of transaction charges. The survey’s findings will be escalated to the Ministry of Finance and the Reserve Bank of India (RBI) to ensure that user sentiments are considered before implementing any Merchant Discount Rate (MDR) charges.
The survey was conducted online from July 15 to September 20, gathering insights from a diverse user base.
Conclusion
The survey underscores the critical role UPI plays in the financial habits of millions of users. As the demand for seamless and cost-effective payment solutions grows, it is clear that any proposed transaction fees could significantly impact user adoption and satisfaction. The responses from this survey will hopefully guide policymakers in making decisions that align with the interests of UPI users.
