The unified payment interface (UPI), which provides a free, quick, secure, and seamless experience, has become the primary method of digital payment. According to the statement, linking a bank account in a UPI-enabled app to make payments is traditionally the most popular UPI transaction method and accounts for over 99.9% of all UPI transactions.
To send money to UPI receivers, however, you can now utilise a QR code or UPI handle and pre-paid wallets like Paytm, Amazon Pay, Mobikwik, and other prepaid wallets.
And therefore, 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 are now allowed to be a part of the interoperable UPI ecosystem, and PPI transactions over Rs 2,000 will now bear a 1.1% fee from the National Payments Corporation of India (NPCI). It further emphasised that there are no fees for bank account to bank account-based UPI payments (i.e., typical UPI payments), adding that the interchange costs introduced "are exclusively applicable for the PPI merchant transactions and there is no charge to customers." Here is all the information you require regarding the most recent UPI changes.
Who will gain from this?
It is possible to make payments using wallets without integrating bank accounts with UPI for those who load money into prepaid wallets but do not enjoy attaching bank accounts to UPI. These users will now be able to pay in stores using UPI.
New charges have been filed?
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. There will be a 0.15% fee for loading amounts greater than Rs 2000, which is Rs 3 on Rs 2000.
Is UPI meant to be free or not?
For the fundamental function of account-to-account transfers, UPI is required by the government to be free. There will be a cost associated with merchants using UPI infrastructure to accept alternative payment methods (such as credit cards or prepaid cards).