look news india
UPI Payment: Digital transactions have 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 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 charges on this also.
Companies preparing to charge fees on UPI payments!
PhonePe, Google Pay dominate 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 impose charges on UPI. Companies say that for long-term stability, a system like credit card with merchant discount rate (MDR) is needed.
Fintech companies are worried that zero MDR is hurting their business models. Companies have also discussed this matter with NPCI. However, the government has refused to charge UPI. Let us tell you that GooglePay and PhonePe have 80 percent share in the UPI market. After the strictness of RBI, Paytm's UPI transactions have declined, while companies like Google Pay, PhonePe have benefited from it.
If fees are imposed then 70 percent will stop using
However, a recent survey showed that 70 percent of people using UPI would abandon it if fees were imposed on UPI payments. The solution found in the survey was that if any kind of fee is imposed on UPI payment, then people will stop using it.