UPI Transaction Fee: Majority of Users May Stop Using UPI if Fee is Levied, Survey Finds

A recent online survey conducted by LocalCircles revealed that a significant majority of people in India may discontinue using the Unified Payments Interface (UPI) if a transaction fee is imposed on it. However, a substantial number of respondents also reported experiencing a transaction fee being charged on their UPI payments at least once in the past year.

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Survey Findings

The survey garnered over 34,000 responses from citizens across 364 districts in India, with 67% of the respondents being male and 33% female. The survey results indicated that only 23% of UPI users are willing to bear a transaction fee on payments, while a whopping 73% stated that they would stop using UPI altogether if such a fee were introduced.

Frequency of UPI Usage

Regarding the frequency of UPI usage, the survey found that half of the UPI users conduct more than 10 transactions every month, highlighting the widespread adoption and reliance on UPI for digital payments in India.

UPI Transaction Fee Experience

Interestingly, 37% of the UPI users surveyed claimed that they had encountered a transaction fee being levied on their UPI payments at least once in the past 12 months. This finding contradicts the earlier clarification issued by the finance ministry, which asserted that there was no proposal to impose charges on UPI transactions.

The survey findings underscore the potential impact of introducing a transaction fee on UPI payments in India. With a large majority of users expressing their unwillingness to bear such a fee and indicating their readiness to abandon UPI, it remains to be seen how the government and regulatory authorities will address this issue and ensure the continued growth and accessibility of digital payments in the country.