Fees can be withdrawn on UPI payments, companies like PhonePe, Google Pay got a shock

If there is such a change in UPI payment, then companies like PhonePe, Google Pay, Amazon Pay can be affected. (Photo credit: NPCI)

The National Payments Corporation of India (NPCI) has issued a circular. Under this circular, zero (0) fees have been agreed on all domestic UPI merchant transactions for UPI interchange and payment service providers from 1 January 2020. Also, the deadline to eliminate the existing fees has been kept until April 30, 2020. Let us know that this mandate will not apply to services like EMI, overdraft account and business-to-business (B2B) collections and payments.

Earlier the merchant discount rate (MDR) was abolished. At the same time, after this, it has been decided to abolish the transaction charge. Talking about the current situation, banks are currently not charging MDR on RuPay debit card and UPI transactions. In such a situation, it is being speculated that other stakeholders can also get relief from this. But if this happens, the revenue of companies like PhonePe, Google Pay, Amazon Pay can be affected.

Companies like PhonePe, Google Pay, Amazon Pay will be in trouble: If seen, it is going to be quite difficult. Because it has been decided to completely reduce this fee from all types of UPI merchant transactions. For this reason, it is not clear how all the fees collected so far will be recovered or will not be recovered. If it is recovered then companies like PhonePe, Google Pay, Amazon Pay may face a lot of difficulties.

Let us tell you that such third party companies earn from 0.30 paise to 0.35 paise on every transaction. In such a situation, if it is reduced to zero, then it will be very interesting to see how these companies will manage their revenue.

Post a Comment

Previous Post Next Post