By Admin 
UPI Transaction Fees: This is the era of digitalization. Every work is being done online at the press of a button. Even payments are now being done online more and more. From buying vegetables to paying bills, people have started using UPI everywhere. In today’s time, we pay for every small thing through UPI. But what happens when transaction fees are imposed on UPI?
Shocking revelation in the survey
A survey has revealed that if transaction fees are imposed on UPI, then about 75 percent of users in India will stop using this platform. This is a danger signal for the country’s rapidly growing digital payment system. This survey shows the extent to which users value free payments, even as UPI is moving closer to the target of one billion transactions every day.
This survey by LocalCircles found that if fees are imposed on UPI, only 25 percent of users will continue using it. The survey also revealed that opposition to fees has increased compared to 2025. At that time 73 percent people had opposed the transaction fee.
Demand to impose MDR
Payments Council of India (PCI) has suggested imposing 0.3 percent MDR for big merchants. Actually, there is a debate going on in the fintech sector regarding zero MDR and business stability. To keep the crores of transactions happening every day through UPI secure, huge expenditure is incurred on technology. Whereas without any earning or MDR it is difficult to bear this expense for a long time.
Companies like Google, PhonePe and Paytm also do not earn any direct income from UPI transactions. In such a situation, there is pressure from investors that companies should now move towards profit with MDR. However, PCI also says that the burden of 0.3 percent MDR should not be put on common consumers but should be limited to big businessmen. This will have two benefits – one, it will bring new investment in the digital payment ecosystem and second, it will also help in developing new technology.
Government’s stance
The government has termed the news of imposition of transaction fees on UPI as misleading and baseless. The aim of the government is to promote the digital economy. Due to this, the policy of ‘Zero MDR’ is applicable on UPI and RuPay debit cards from 2020.
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