New Delhi: 3 out of 4 UPI users will stop using it if transaction fee is introduced online survey firm Localcircles has said. The survey asked 15,598 UPI users about their response if charges were to be introduced on UPI transactions, what format should be used. 75 percent respondents stated there should be no charge on UPI transactions, and that they will stop using if a charge is introduced.
5 percent of respondents stated that there should be fixed fee per transaction, 6 percent stated they are agreeable with a fee that is a percentage of the transaction value. 11 percent stated they are agreeable to fixed fee up to a certain threshold and a percentage of transaction value above that and 3 percent of respondents did not give a clear answer.
“To sum up, only 22% 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. Also, it must be noted that the percentage of UPI users unwilling to pay a transaction fee has, in fact, marginally increased from 73% to 75% since the last survey in March 2024,” said the report.
LocalCircles will escalate the findings of this survey with Ministry of Finance and Reserve Bank of India (RBI) so that pulse of the UPI user is taken into account before any MDR charges are permitted.
38 percent of respondents indicated that they are conducting over 50 percent of their payment transactions via UPI and 37 percent were found to be conducting over 50 percent of their payment by value.
“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. The survey finds that while 22% UPI users surveyed are fine with a transaction fee being levied, 75% UPI users are completely against any transaction fee being levied and claim they will stop using UPI if it is introduced,” LocalCircles said.
