75% Users Will Stop Using In India If UPI Charges Are Levied : LocalCircles
New Delhi: Is Future of UPI at stake in India? According to a latest survey by India's leading community platform, 'LocalCircles,' around 75% Unified Payment Interface (UPI) users would stop using it if different applications (apps) levy any transaction charges. Albeit, some of the apps have already been levying UPI Charges on some types of transactions of select purposes, but if full fledged charges are imposed, then, India might go back to Cash. On one side, the government plans to expand UPI services internationally, but, on other side they plan to make it chargeable. So! How’s this going to work?
LocalCircles Survey:
The organisation found that only 22 per cent of the respondents said they would continue to use it for digital payments despite of the levy of UPI charges. It was also found in the survey that 38 per cent of users in India use UPI to make over 50 per cent of their total payment transactions instead of other digital means like debit or credit card. The survey was conducted among 42,000 respondents from 308 districts in the country from July 11 2024 to September 20, 2024.
How many people use UPI in India?
People have out rightly rebuffed any proposal of imposition of UPI charges. Since, the effortless payment transaction mechanism was launched in the country, its volume and value have definitely picked up but cash still remains king in India. A recent report by CMS Info Systems (logistics and technology solutions provider to banks, and NBFCs), signaled that cash accounted for 60% pf country's total transactions.
Despite of UPI’s growing acceptance, it still hasn’t yet taken over India’s transcation volume ecosystem. And with imposition of UPI charges in focus, both the volume and value figures may fall.
According to government date, in FY24, UPI transaction volume reached all time high of 13,119 crore. While, its value reached whopping Rs 200 lakh crore figure. In the fiscal under consideration, UPI transactions accounted for 705 for country's total digital transactions.
