India built the world's biggest digital payments miracle. Now comes the bill
Summary
India’s digital payment system, called UPI, has grown to become one of the biggest and fastest ways to send money instantly without fees for users. The government is now considering charging merchants a small fee for large transactions, which could change how the system works for businesses but not for consumers.Key Facts
- UPI lets people scan a QR code and send money instantly without cash or cards.
- Users have not had to pay any fees to use UPI for all their payments so far.
- The government is considering a fee for merchants on bigger transactions, possibly between 0.3% and 0.5%.
- Any new fees would only apply to some large payments and bigger businesses, not regular consumer payments.
- UPI processed nearly 24 billion transactions worth about $313 billion in July alone.
- More than 550 million people use UPI, and it is available in 11 countries outside India.
- UPI’s design allows different payment apps like Google Pay and PhonePe to work on the same network.
- Research shows that having many merchants accept UPI helped its growth, so fees might slow small merchant adoption.
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