75 pc of UPI Users May Abandon Platform if Transaction Fees are Imposed: Survey

Anisha Mehra

North News
Chandigarh, September 26

The Unified Payment Interface (UPI) has quickly become one of India’s leading digital payment methods, with a significant 38% of users making over half of their transactions through the platform, according to a LocalCircles survey. According to the news outlet Trak.in, 37% of users stated that more than half of their payment value is processed via UPI, cementing its position as a preferred payment method due to its ease of use and no-cost service.

However, the survey revealed a potential threat to UPI’s dominance as 75% of users expressed they would stop using UPI if transaction fees were introduced. Only 22% said they would continue despite fees, signaling a sharp decline in its popularity. The current fee-free structure is a key driver behind UPI’s widespread appeal, especially among small businesses and cost-sensitive consumers, meaning any shift could significantly reshape the digital payments landscape in India, the news outlet further said.