The survey, which received responses from over 42,000 individuals across 308 districts, found that 38% of respondents rely on UPI for more than half of their payment transactions, making it their primary method for digital payments.This preference highlights the convenience and efficiency that UPI offers.
Despite its popularity, the survey also indicated that only 22% of UPI users would be willing to pay a transaction fee. The remaining 75% expressed a clear desire to maintain the current fee-free structure.
UPI remains popular, but not enough to get ‘paid’
These findings come as UPI continues to experience rapid growth. In the 2023-24 fiscal year, UPI transactions surpassed 100 billion for the first time, reaching a total of 131 billion. The value of transactions also increased significantly, reaching Rs 199.89 trillion.
The survey’s results are particularly significant given the increasing reliance on UPI for a wide range of transactions, from daily purchases to bill payments. Any potential introduction of transaction charges could have a substantial impact on the usage of UPI and the overall digital payments landscape in India.
In response to the survey findings, LocalCircles plans to escalate the matter with the Ministry of Finance and the Reserve Bank of India (RBI) to ensure that the concerns of UPI users are taken into account before any decisions regarding transaction charges are made.
“With UPI rapidly becoming an integral part of nearly 4 in 10 consumers, there is strong resistance to any kind of direct or indirect transaction charges being imposed. LocalCircles will escalate the findings of this survey with the Ministry of Finance and Reserve Bank of India (RBI) so that the pulse of the UPI user is taken into account before any MDR charges are permitted,” the survey report said.