UPI Payments To Charge Fees
The UPI Payments has supported cashless transactions ever since the government began to demonetise currency in 2016. Despite the fact that cash is still king in today’s world, internet payments have considerably grown.
The Unified Payments Interface reached its zenith in 2022 with a record-breaking 782 crores in transactions. (UPI). In December, UPI transactions surpassed a new high of Rs 12.82 lakh crore.
According to data released by the National Payments Corporation of India (NPCI), which oversees retail digital payments, the volume of transactions increased by 7.12% in December compared to November, while the value of transactions increased by 7.73% over the same time frame. In October 2022, payments made using UPI had hit the Rs 12 lakh crore milestone.
Who is going to pay?
For instance, the merchant will pay PhonePe the appropriate interchange fee if a customer uses UPI (Paytm or Google Pay) to make a PPI payment in-person or online and the QR code says “PhonePe”.
The user’s bank receives the interchange charge for processing UPI transactions from the merchant’s bank (the person or company getting the payment).
Conclusion
Now, only small sums are involved in the largest UPI transactions. The NPCI asserts that by paying PPI firms more money for pushing UPI transactions, UPI’s average transaction value can rise and the cost of India’s payment systems as a whole can be reduced.
The NPCI asserts that the suggested interchange charge is in accordance with their recommendations, while the Council on Payments and Market Infrastructures, the World Bank, and others support interchange fees of up to 1.15% for UPI transactions.