83% shopkeepers are not ready to pay the UPI charge to be imposed from October 15. At the same time, if shopkeepers pass this expense on to customers, then 86% people will not pay through UPI. In such a situation, total transactions may decrease by 10% and payment numbers may decrease by 4%. LocalCircles has conducted a survey regarding this in which this information has come to light. According to the new rules, 0.4% charge (MDR) will be levied on UPI merchant payments above Rs 2,000. Are shopkeepers ready to pay 0.4% fee? LocalCircles’ survey of more than 32,000 merchants in 242 districts of the country found that only 17% merchants are ready to bear the burden of 0.4% MDR. What will happen if shopkeepers pass the charge on customers? This question was asked to more than 67,000 UPI users from 291 districts. 86% of users said that they would leave UPI and adopt other options for payments of more than ₹2,000. What is the share of merchant transactions above ₹2,000? Payments larger than ₹2,000 account for less than 5% of total UPI payments to merchants. But in terms of value this figure becomes very big. About 67% of the total money comes from these big payments. This works out to around ₹6 lakh crore every month. This amount is approximately 20% of the value of total UPI transactions across the country. That is, even though big transactions may be less in number, they constitute a major part of the money circulating in the market. What ways can merchants find to reduce the burden of fees? Since 83% of merchants are not willing to pay MDR, they can either openly charge the customer as a surcharge, add it to the prices of products or services, or ask customers to adopt other payment modes like cash/card.
Source link
[ad_3]
83% shopkeepers are not ready to pay UPI charge: 86% people will not make UPI payment if the cost is passed on to the customers; LocalCircles Survey
