Users will not be charged due to Ppi exchange, clarifies Npci
All Unified Payment Interface (UPI) transactions over Rs 2,000 made through Prepaid Payment Instruments (PPIs) like online wallets or preloaded gift cards etc. will incur interchange fees up to 1.1% as of April 1, 2023.
All Unified Payment Interface (UPI) transactions over Rs 2,000 made through Prepaid Payment Instruments (PPIs) like online wallets or preloaded gift cards etc. will incur interchange fees up to 1.1% from April 1, 2023. The interchange fee is typically associated with card payments and is charged to cover the costs of accepting, processing and authorizing transactions.
Although the digital platform welcomed this decision, consumers might have several questions about it if the decision will affect them anyway.
Here is a FAQ answering all these questions:
Will customers be charged for UPI payments?
So how will consumers benefit?
With this addition to UPI, customers will have the choice to use any bank account, RuPay credit card and prepaid wallets on UPI-enabled apps.
“The NPCI Circular will make wallets more attractive to customers by opening up new payment use cases. It will eliminate the need for customers to carry multiple cards, reducing fraud and theft due to exposed card numbers. card,” said Akash Sinha, Co-founder and CEO of Cashfree Payments.
How will merchants benefit from this?
Many merchants use wallets to accept payments from customers, for example, at the point of sale. Interoperability will make collection much easier for them, as it will allow merchants to accept wallet payments regardless of the wallet the customer is using.
“Furthermore, it will eliminate the need for specific integrations with a particular wallet to accept payments on a website since customers can also pay via UPI or card infrastructure. This will increase payment alternatives for customers. wallet interoperability with UPI will catalyze progress in digital payments, improving the customer experience,” said Sinha CNBC-TV18.com.
Echoing similar views, Ashwin Chawwla, CEO and Founder of Escrowpay, said the move should generate much-needed revenue for payment service providers, which are struggling to maintain profitability due to low transaction fees. on UPI transactions.
First post: March 29, 2023 12:33 STI