Think Tank Urges Government to Withdraw Proposed UPI Merchant Charges
- Reports
- 2
- Developments
- 1
- Repetition
- 50%
New informationRepeats or wire copies
What happened
An economic think tank, GTRI, called on the government to withdraw proposed UPI charges scheduled to take effect on October 15. The new fee would impose a 0.4 per cent charge on transfers over Rs 2,000 made to merchants, while person-to-person and small payments would remain free. GTRI warned that these charges could negatively impact consumers, merchants, and the broader Indian economy.
From rediff.com
Why it matters
GTRI noted that UPI's annual payment value surpassed 91 per cent of India's GDP last year, underscoring the system's economic significance. The think tank stated that charging merchants could raise prices and reduce small business earnings, potentially strengthening the competitive position of card networks like Visa Inc. and Mastercard.
UPI is currently gaining market share, posing a competitive challenge to established card networks such as Visa Inc. and Mastercard.
From rediff.com
Who's involved
- IndiaThe market where the proposed UPI charges are being considered.
- MastercardA global payment network that could benefit if UPI charges are withdrawn.
- Visa Inc.A global payment network that could benefit if UPI charges are withdrawn.
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- IndiaSpeculative
Consumers might face increased prices if the proposed merchant charges are implemented.
- MastercardSpeculative
Mastercard might see increased revenue or market share if UPI's competitive advantage is diminished.
- Visa Inc.Speculative
Visa Inc. might see increased revenue or market share if UPI's competitive advantage is diminished.
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The entities involved
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Mastercard
American multinational financial services corporation
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Visa Inc.
American multinational financial services corporation