A new survey by community platform LocalCircles has revealed that India’s widely adopted Unified Payments Interface (UPI) could face a significant loss of users if transaction fees are levied on the digital payments system.
73% Users Warn They’ll Stop Using UPI if Fees Applied
The survey, which polled over 34,000 respondents across 364 districts in the country, found that a staggering 73% of users have indicated they would stop utilizing UPI in the event of any transaction fee being charged.
Among this majority vowing to quit, 23% stated they would be willing to bear some level of fee on UPI transactions.
The remaining 77% were firmly against paying any charges to make UPI payments, highlighting the free nature of the service as a key driver of its rapid adoption across India.
Claims of Prior UPI Transaction Fees
Interestingly, the LocalCircles survey also found that 37% of UPI users claimed they had experienced instances of transaction fees being levied on their UPI payments at least once in the past 12 months.
This seeming contradiction with UPI’s no-cost policy further underscores user resistance to any future moves toward monetizing the digital payments platform through fees.
With 67% male and 33% female participants, the wide-ranging survey captures a diverse user base’s sentiments on UPI’s compelling free service proposition.
