UPI users against levying fee on transactions: Survey | Business News
Users of thriving UPI (Unified Payments Interface) for digital payments are resisting the proposal to levy a fee on such transactions, says a survey. As many as 75 per cent of respondents said that they will stop using UPI if a transaction fee is introduced, according to a survey conducted by LocalCircles. Only 22 per cent UPI users surveyed are willing to bear a transaction fee on payments. The percentage of UPI users unwilling to pay a transaction fee has, in fact, marginally increased from 73 per cent to 75 per cent since the last survey in March 2024, it said. As UPI transactions are growing, fintech industry players and banks have been pushing the government and regulators to permit a Merchant Discount Rate (MDR) on UPI transactions. In other words, they want to levy a fee on merchants/ businesses for UPI transactions similar to how it is levied on merchants in the case of debit and credit card transactions. The demand for MDR has led to small merchants and consumers expressing their discontent. Consumers …