New Delhi: A recent survey conducted by Localcircles has revealed that around 75% of Unified Payments Interface (UPI) users might stop using the service if transaction fees are introduced. The survey, which collected responses from over 42,000 participants across 308 districts, found that 38% of users conduct more than half of their financial transactions through UPI.
Despite the widespread use of the platform, only 22% of respondents expressed a willingness to accept any form of transaction fee. A vast majority indicated that they would switch away from UPI if charges were implemented.
As per a Vartha Bharati report, the survey highlights UPI’s growing popularity, noting that transactions surged to 131 billion in the fiscal year 2023-24, reflecting a 57% increase in volume and a 44% rise in transaction value, amounting to a staggering Rs 199.89 trillion.
Localcircles intends to submit the survey findings to the Ministry of Finance and the Reserve Bank of India (RBI) to argue against the imposition of transaction fees, which could potentially deter users. The survey was conducted online between July 15 and September 20, with 15,598 respondents specifically addressing the issue of transaction fees.
These insights underscore the reliance on UPI for digital payments in India and the potential impact on its user base if costs are introduced.
