In the modern age, most individuals have refrained from carrying cash in their wallets as they opt for digital transactions when purchasing goods and services. The world has become so advanced that even someone buying a cup of tea from a street vendor makes payments using UPI.
This trend has led to a significant decline in the preference for keeping cash. People have developed a strong habit of using UPI apps like Paytm, Google Pay, PhonePe, and similar platforms.
The popularity of UPI is spreading not only in urban areas but also in rural shops. There’s a surprising news update for users who frequently use UPI for payments. You may be curious about what this update entails, and to understand more, it’s essential to read our article thoroughly.
Big update came out
Online payment adoption is swiftly increasing in India, which is astonishing everyone. With the rise in popularity of online payments in the country, apps such as the Rupay payment network were introduced. This app was entirely indigenous. Since its launch, this app has effectively challenged American networks like Visa and Mastercard in the market, a development you can readily observe.
Major banks in the country are issuing Rupay credit cards, which are directly impacting the share market, pushing it up by 30 percent. Meanwhile, according to discussions with experts in the media, users are expected to increasingly use credit cards for UPI payments. This trend is driven by the necessity to pay an MDR charge on payments exceeding Rs. 2,000.
There is a rapid discussion underway regarding increasing charges for making online payments through credit cards in such a scenario. If this happens, it will directly impact the pockets of ordinary people. Users may have to pay charges even for small transactions, which is being widely accepted.
Official information not yet received
There is currently no official confirmation on whether there will be charges for using credit cards to make UPI payments. However, discussions on this matter have been ongoing for quite some time. Last month, fintech companies also expressed concerns to the government about the revenue shortfall in UPI. In any case, to maintain a strong presence in the market for a considerable period, the need for systems like credit cards along with the Merchant Discount Rate will remain crucial.
