Indian merchants resist 0.4% UPI fee over ₹2,000
Business
Big changes could be coming for digital payments: A new survey found that 83% of merchants aren't willing to pay the upcoming 0.4% fee on UPI transactions above ₹2,000.
With over 32,000 businesses across India weighing in, many shop owners might rethink how they accept payments as this rule takes effect.
LocalCircles predicts UPI value, volume dip
If stores pass this fee on to customers, most people say they'd switch to cash or cards instead, especially for bigger purchases.
Even though these high-value UPI payments make up just 4% of merchant transactions by volume, they account for a massive 67% of merchant payment value.
LocalCircles's report predicts a dip in both UPI transaction value and volume once the new charges kick in.