UPI Transaction: 6 Common FAQs About Digital Payments

The Payments Council Of India (PCI) recently clarified that UPI has remained free for consumers since its launch in 2016 and that there is currently no charge for small merchants, including kirana stores, to accept UPI payments.

Will Consumers Have To Pay To Use UPI?
According to PCI, UPI has been free for consumers since its launch in 2016. Indians can continue making instant digital payments without paying transaction charges. (File Photo)

Will Small Merchants Be Charged For Accepting UPI?
Small merchants, including kirana stores, are not required to pay merchant discount rate (MDR) charges for accepting UPI payments, PCI said. It added that protecting small merchants remains central to the growth of India’s digital payments ecosystem. (File Photo)

What Is The Debate Over UPI Charges?
PCI said UPI has evolved from a new payment platform into the world’s largest real-time payment system. As transaction volumes surge, the focus is now on how to sustainably fund the infrastructure supporting billions of secure transactions while protecting consumers and small merchants. (File Photo)

Who Continues To Invest In UPI?
Banks, payment companies, fintech firms, NPCI and the Reserve Bank of India have collectively invested in UPI’s technology, cybersecurity, fraud prevention, innovation and customer support for nearly a decade, as per PCI. (File Photo)

Is UPI Free?
The costs of running the payment infrastructure including cybersecurity, fraud prevention, compliance, technology and customer support, are currently borne by ecosystem participants such as banks and payment service providers. (File Photo)

Would Consumers Pay If Large Merchants Are Charged?
PCI stated merchant service charges, wherever applicable, are commercial arrangements between merchants and payment service providers. Such charges do not mean consumers would have to pay for using digital payments. (File Photo)

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