Three out of four users will stop using UPI payments if transaction fee is introduced: Survey

A survey report by research agency LocalCircles, released on Sunday, September 22, revealed that 75% of the sampled Unified Payments Interface (UPI) users would stop using the payment method if transaction fees were introduced. Out of the 15,598 UPI users surveyed, 75% stated, “There should be no charge on UPI transactions, and I will stop using if a charge is introduced,” according to the LocalCircles report.

The remaining 22% of respondents were open to paying a transaction fee, while 3% were undecided. The total survey sample included nearly 42,000 responses from consumers in 308 districts across India. Among the respondents, 63% were men, and 37% were women.

The sample consisted of 41% from Tier 1 cities, 30% from Tier 2, and 29% from Tier 3, 4, and rural areas. All participants were validated citizens registered with LocalCircles. A similar survey conducted in March 2024 showed that 73% of users were against paying transaction fees, a figure that rose to 75% by September.

India’s fintech sector has made digital payments like UPI more accessible, contributing to financial inclusion, economic growth, and business expansion. UPI, particularly through platforms like BHIM-UPI, facilitated contactless payments during the COVID-19 pandemic, aiding both social distancing and business operations.

According to data from the National Payments Corporation of India (NPCI), UPI transactions saw a 44% year-on-year increase in value during the 2023-24 financial year, with transactions rising from 84 billion to 131 billion. The total transaction value reached ₹199.89 trillion, up from ₹139.1 trillion. In the first quarter of the current financial year, UPI transactions grew over 36%, amounting to ₹66 lakh crore.