India Delays UPI Transaction Fees Amidst Festive Shopping Season
India's National Payments Corporation (NPCI) has postponed the implementation of transaction fees for large Unified Payments Interface (UPI) payments. The new effective date will be after the Diwali shopping period.
India's National Payments Corporation (NPCI) has delayed its plan to introduce transaction fees for large payments made via the Unified Payments Interface (UPI) platform. The announcement on October 18 cited the upcoming festive season, particularly the Diwali festival, which typically falls around November 8.
The charges were originally slated to begin on October 15. Under the previous plan, merchants processing UPI transactions exceeding INR 2,000 (approximately 140.8 Chinese yuan) would incur a 0.4% fee. The delay comes amid opposition from local retailers and petrol station operators.
UPI is a widely used digital payment system in India, boasting over 500 million users. Google Pay holds a significant market share, accounting for approximately 80% of the UPI market in August.
Following the announcement of the fee deferral, shares of Indian digital payment companies saw a general increase. Paytm, Pine Labs, and One MobiKwik Systems recorded gains of 1%, 1.8%, and 1.3%, respectively.