India postpones UPI payment fee rollout until after Diwali festival
INDA•India delayed a 0.4% merchant fee on UPI transactions exceeding 2,000 rupees until after Diwali, which will be celebrated on November 8. The fee was scheduled to take effect on October 15.
1. Fee rollout delayed
The National Payments Corporation of India said the 0.4% charge on merchant transactions exceeding 2,000 rupees ($21) will be implemented immediately after Diwali, on a date to be notified separately. The deferral is intended to account for the festive season.
2. Retailer opposition
The proposed fee would end more than six years of zero-cost UPI payments and had drawn opposition from retailers and a large broker. UPI is used by more than 500 million people.
3. Payment market
Walmart's PhonePe and Alphabet's Google Pay had about 80% of UPI transaction value in August. The delay would likely give payment firms time to upgrade systems and avoid passing costs to customers, while addressing issues retailers may face during the festive period.
