A survey found that the majority of users would cease using the Unified Payments Interface (UPI) if regular transaction fees were introduced. Around 75% of UPI users indicated they would stop using the service if any transaction charges were levied. In contrast, only about 22% of users expressed a willingness to pay transaction fees on UPI transactions, according to a survey conducted by research agency LocalCircles, which was revealed on Sunday.
The survey revealed that 37% of UPI users have been charged transaction fees more than once in the past 12 months. It further found that 38% of users conduct over 50% of their payment transactions through UPI, opting for it instead of debit, credit, or other digital payment methods.
The survey received 42,000 responses from 308 districts. Earlier, the National Payments Corporation of India (NPCI) reported a record 57% increase in transaction volume and a 44% rise in transaction value for 2023-24 compared to the previous fiscal year.
Further, the survey highlighted that for the first time, UPI transactions surpassed the 10,000 crore mark in 2023, compared to 8,400 crore in 2022. Additionally, it noted that 37% of respondents reported that UPI accounts for more than 50% of their total payment volume in value terms.
“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. LocalCircles will escalate the findings of this survey with the Ministry of Finance and Reserve Bank of India (RBI) so that the pulse of the UPI user is taken into account before any MDR charges are permitted,” the survey said.
The survey was conducted online between July 15 to September 20.