Delhi traders warn of cash preference, extra charges over UPI fees

Traders in Delhi and Noida have voiced growing apprehension over the potential impact of UPI transaction charges on their operations, signalling they may shift payment preferences or adjust pricing strategies if the levies are implemented.

In discussions with business representatives, merchants indicated that additional transaction costs could materially affect their profit margins and operational efficiency. The concerns reflect broader anxieties within the retail and small business community about the sustainability of digital payment models that have become central to Indian commerce over the past five years.

Some traders have indicated they would consider absorbing costs by demanding cash payments from customers or imposing surcharges on digital transactions should their businesses face financial pressure. However, a significant portion of merchants surveyed acknowledged they would prioritize cash transactions going forward, potentially reversing the steady shift toward digital payments that has been encouraged by government policy.

The situation highlights the delicate balance between promoting digital financial inclusion and ensuring that transaction mechanisms remain commercially viable for merchants operating on thin margins. Industry observers suggest any fee structure will require careful calibration to avoid disrupting the payment ecosystem that has expanded rapidly in urban and semi-urban markets across India.