75% of UPI Users in India May Stop Using the Platform if Transaction Fees Are Introduced: Survey

A recent survey conducted by Local circles reveals that a significant majority of Indian users may reconsider using the Unified Payments Interface (UPI) if transaction fees are introduced. According to the findings, around 75% of UPI users expressed concerns over potential charges, stating that they might stop using the platform altogether if such fees were imposed.

The UPI system, which has revolutionized digital payments in India, is currently a no-cost platform for users. It allows instant money transfers between bank accounts using mobile apps like Google Pay, PhonePe, and Paytm, among others. However, the possibility of transaction fees being introduced has sparked widespread worry among consumers, with many fearing it could add an additional financial burden.

The survey, which gathered responses from users across various demographics, highlights that cost sensitivity remains a crucial factor in the widespread adoption of digital payment systems. Many respondents stated that if charges were applied for transactions, they would revert to alternative payment methods like cash, debit/credit cards, or even net banking.

This comes at a time when the Indian government and regulatory authorities have been promoting UPI as a cornerstone of the country’s digital financial ecosystem. The system has seen exponential growth in recent years, handling billions of transactions per month. However, the introduction of transaction fees could potentially disrupt this growth, as a substantial portion of the population may resist the change.

Experts believe that if charges are introduced, there could be a significant shift in user behavior, with consumers seeking cost-effective alternatives or reducing the frequency of UPI transactions. The survey emphasizes that the government and payment platforms will need to carefully consider the implications of such a move on the overall digital payment landscape in India.