What are the changes in UPI? The Only UPI Charges Guide You’ll Ever Need
Due to its free, quick, and convenient services, the universal payment interface (UPI) has become the preferred method of digital payment.
a simple and secure experience. According to the statement, over 99.9% of all UPI transactions historically have been made via linking a bank account in a UPI-enabled app to a payment method. But, using a QR code or UPI handle, money can now be transferred from pre-paid wallets like Paytm, Amazon Pay, Mobikwik, and other prepaid wallets to UPI recipients.
Prepaid payment instruments (PPI) wallets can now participate in the interoperable UPI ecosystem with permission from the National Payments Corporation of India (NPCI). PPI transactions over Rs 2,000 will now incur a 1.1% fee. The statement said, “It is further stressed that there are no charges for the bank account to bank account-based UPI payments (i.e. standard UPI payments) and that the interchange charges introduced are only relevant for the PPI merchant transactions.
This is everything you need to know about the most recent UPI adjustments.
Who will gain from this?
Wallets can be used for payments by those who load money into prepaid cards but do not enjoy connecting their bank accounts to UPI.
without combining UPI with bank accounts. These users will now be able to pay in stores using UPI.
Exist any new charges?
Nothing has changed for UPI users who use bank accounts. Large establishments and for transactions over Rs 2000, the merchant will pay a 1% fee on the new facility (wallet on UPI).
Is there a charge for using a wallet?
Payments made using a wallet won’t cost the user anything. Regardless of how frequently the user loads money into their wallets using UPI, there is no fee as long as the amount is less than Rs 2000. A 0.15% fee, or Rs 3 on Rs 2000, will be charged for loading amounts greater than Rs 2000.
Is UPI a free service or not?
The government has ordered that UPI be free for the essential function of account-to-account transfers. There will be a cost when businesses use the UPI infrastructure to accept alternative payment methods (such as credit cards or prepaid cards).