UPI Transaction Fee: After the strictness of RBI on Paytm, the number of its users has increased further. Till now this service is free, but now companies are preparing to charge for it. According to the report of Times of India, fintech companies are worried about revenue.
UPI Payment: Digital transactions got a boost after demonetization. The craze for digital payments has increased so much that people have forgotten to keep cash. Whether you want to invest or go shopping. Whether you want to buy chocolate worth Rs 5 or jewelery worth thousands… people make payments indiscriminately through UPI payment. UPI has made the method of payment easier by eliminating the tension of keeping change. The biggest reason for the increasing craze of UPI is that it is free as compared to debit card or credit card. People and merchants are using UPI without any charges, but now preparations have started to charge fees on this also.
Companies preparing to charge fees on UPI payment
PhonePe, Google Pay are dominant in the UPI sector. After the strictness of RBI on Paytm, the number of its users has increased further. Till now this service is free, but now companies are preparing to charge for it. According to the report of Times of India, fintech companies are worried about revenue. Companies want to charge on UPI. Companies say that for longterm stability, there is a need for a system like credit card with merchant discount rate i.e. MDR.
Fintech companies are worried that zero MDR is hurting their business models. Companies have also discussed this with NPCI. However, the government has refused to charge fees on UPI. Let us tell you that GooglePay and PhonePe hold 80 percent share of the UPI market. After the strictness of RBI, Paytm’s UPI transactions have fallen, whereas companies like Google Pay, PhonePe have benefited from it.
If fees are imposed, 70 percent will stop using
However, a recent survey revealed that if fees are imposed on UPI payments, 70 percent of the people using UPI will leave it. The solution found in the survey was that if any kind of fee is imposed on UPI payment, then people will stop using it.
