This contributes over 99.9 per cent of total UPI transactions. According to NPCI, the share of the individual to merchants transactions above Rs 2,000 is only about 5 per cent of the total transactions in February.Ĭurrently, the most preferred method of UPI transactions is linking the bank account in any UPI-enabled app for making payments. The move is likely to affect high-value transactions. Overall volume of transactions to be affected? The customers would feel the pinch of this additional cost only if the wallet issuers decide to pass on the service fee.

Now, NPCI is also charging prepaid payment instrument issuers 15 basis points for recharging a wallet with over Rs 2000. It said that no Paytm customer will have to will pay any charges on making payments from UPI either from a bank account or PPI/Paytm Wallet Paytm has already issued a clarification on the NPCI circular. If the merchants decide to pass on the higher cost to customers, the latter will bear the burden. The decision of who the onus falls on depends on the merchants. The interchange fee is 0.5% for fuel, education, agriculture and utility payments whereas it's 1.1% for convenience stores and retail outlets. The charges applied would vary from 0.5% to 1.1% depending on the type of transaction.

This levy was being introduced to help cover for the cost of interchange or interoperable between two wallets. The charge will kick in when a customer having a wallet of one particular company makes a payment to a merchant, who has a wallet of another company. It is from a prepaid instrument like your Paytm or PhonePe wallet, Amazon Pay.The transaction is a Person to the merchant (P2M) transaction.

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