Kerala traders plan UPI boycott to protest against digital payment push

A prominent traders' forum in Kerala has called for a boycott of UPI transactions scheduled for October 15, signalling discontent within the merchant community over the government's push towards digital payments. The protest aims to draw attention to what traders argue are unfavorable conditions for retailers operating in the informal sector.

The boycott reflects broader concerns among small and medium traders across India who contend that the rapid expansion of digital payment infrastructure disadvantages merchants with lower transaction volumes and limited access to technology. Traders have also raised objections to payment processing fees and the digital divide affecting rural and semi-urban areas.

Kerala's trader associations have been vocal about regulatory challenges and operational constraints they face in adopting digital payment systems. The October 15 boycott is expected to impact transaction volumes across retail establishments that choose to participate in the protest.

The initiative comes at a time when India's digital payment ecosystem continues to expand rapidly, with UPI recording significant growth in transaction volumes. However, parallel concerns persist among grassroots traders about inclusivity and the sustainability of cash-based commerce in smaller markets.