UPI Making People Spend More, 74% Overspending Avg. Rs. 1515: Delhi IIIT Survey
Digital or UPI transactions have become easier due to the availability of smartphones. Transferring money and buying things online or through UPI is becoming a breeze. People no longer need cash. As a result, people no longer have to go to banks or ATMs for cash. In such a situation, a bad aspect of UPI or digital transactions has come to the fore. That is, people are spending unnecessarily because of UPI. In other words, they are spending more than they need. From daily necessities to luxury home goods, expensive clothes, and high-end goods, people are buying through UPI. They are also buying things that they don’t really need. This problem has arisen because people prefer to make purchases through UPI/QR codes. The said information has come to light from a recent survey conducted by Delhi IIIT. Around 74 percent of people spend more on UPI and other digital payment methods. Dealing in cash would not be as much as financial transactions over the phone. Therefore, experts say that people are not so aware of the increase in expenses.
According to the recent information released by NPCI (National Payments Corporation of India), UPI transactions in the country have increased to 1333 crores in the month of April. There has been a 50 percent increase in the number of UPI transactions compared to April 2023. According to WorldLine’s Chief Executive Officer (India) Ramesh Narasimhan, UPI has the highest dominance in digital payments. This is because financial transactions can be done on smartphones. As a result, people’s confidence in smartphone-based payment systems is increasing, he says.
However, the average cost per transaction on UPI has decreased by 8 percent. Earlier it was 1648 rupees, now it has reduced to 1515 rupees. According to experts, the cost of spending in India is on the rise. This is evident from the sales of cars, smartphones, TVs, and other products. It is driving the economic growth of the country. But on the other hand, people are spending more on some high-value transactions through UPI. According to a report, people’s interest in digital payments is increasing in the country. 42 percent of consumers are interested in using UPI for online shopping in India. Transactions on UPI are easier than cash or credit/debit card transactions. On the one hand, people’s spending is increasing, but on the other hand, businessmen’s savings are also increasing. So the survey reveals how digital transactions or UPI have changed people’s spending and saving habits. 91.5 percent of people were satisfied with the UPI transaction experience, while 95.2 percent found it convenient.
