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Paytm, PhonePe Clarify UPI Transactions Still Free For All CustomersPaytm has issued a clarification regarding UPI-related fees after the National Payments Corporation of India (NPCI) notified that merchant transactions of over Rs 2,000 done through UPI (Unified Payments Interface) will attract up to a 1.1% interchange fee. The digital payment firm stated that customers wouldn't be required to pay any charges for UPI transactions.
In a tweet, Paytm clarified, “Regarding NPCI circular on interchange fees & wallet interoperability, no customer will pay any charges on making payments from UPI either from the bank account or PPI/Paytm Wallet”.
“Please do not spread misinformation. Mobile payments will continue to drive our economy forward!” the statement read.
The fintech stated that “UPI payments are still free for all customers! You will NOT be charged for any P2P money transfer OR any merchant payments”.
The digital payment firm reiterated that there are “zero charges” for customers to carry out transactions using UPI. It said, “Acquirer will pay PPI issuers an interchange fee (1.1%)” and those large / online merchants will pay MDR to acquirers.
“The only thing that is new is that now Wallet payments can happen via a UPI QR Code also,” the tweet read.
In a tweet, Paytm clarified, “Regarding NPCI circular on interchange fees & wallet interoperability, no customer will pay any charges on making payments from UPI either from the bank account or PPI/Paytm Wallet”.
“Please do not spread misinformation. Mobile payments will continue to drive our economy forward!” the statement read.
PhonePe too addressed misinformation spreading on social media about UPI transaction fees and shared some facts in a series of tweets. “Dear Users. There is a lot of false news on social media about UPI-related charges today. Please do not believe it!,” the tweet read.
The fintech stated that “UPI payments are still free for all customers! You will NOT be charged for any P2P money transfer OR any merchant payments”.
It added, “Merchants also will NOT be charged if the customer pays using *any bank account* using a UPI app. The transaction value does not matter. MDR is zero for ALL bank account-based UPI payments”.
PhonePe further highlighted that the NPCI has recently allowed Prepaid Payment Instruments (PPIs)/wallets “to join the UPI network”. It said that for the “PPI-based merchant payments” some merchants will be needed to pay Merchant Discount Rate (MDR).
The digital payment firm reiterated that there are “zero charges” for customers to carry out transactions using UPI. It said, “Acquirer will pay PPI issuers an interchange fee (1.1%)” and those large / online merchants will pay MDR to acquirers.
PhonePe stated that no MDR will be charged to small offline shops for PPI-based UPI transactions of less than Rs 2,000. It said the merchant had been already paying MDR for PPI-wallet transactions “for several years”.
“The only thing that is new is that now Wallet payments can happen via a UPI QR Code also,” the tweet read.
The NPCI said it will review the pricing on or before September 30, 2023.