A big change might be coming in the way we shop and pay. If you use UPI for your daily purchases, then this news is like a jackpot for you. The Indian government is working on a new scheme that could reward people who pay through UPI with discounts. On the other hand, those who use credit cards might end up paying more.
Yes, you read that right! Under this plan, UPI payments could come with a direct price cut for buyers. While the details are still being worked out, sources say that the government wants to pass on the benefits of UPI to the public in a direct and simple way.
Why is the Government Doing This?
UPI has become one of the most popular ways to make payments in India. It is fast, free, and safe. But now, the government wants to make it even more attractive. The goal is to give buyers a small discount when they pay through UPI. This will not only help people save money but also encourage more digital transactions.
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Officials from the Ministry of Consumer Affairs are planning a big meeting with companies like Amazon, Flipkart, banks, and NPCI (which runs UPI). The aim of this meeting is to push the plan forward and see how soon it can be started.
Why Credit Cards Are Costly for Shopkeepers
Most people don’t know this, but when you pay using a credit card, the shopkeeper does not get the full amount. A small fee of 2 to 3 percent is taken by banks or companies like Visa and MasterCard. This fee is called MDR, or Merchant Discount Rate.
For example, if you buy something worth ₹100 using a credit card, the shopkeeper might get only ₹97 or ₹98. The rest goes to the payment company. Many shopkeepers do not like this and often ask customers to pay using UPI or cash instead.
In UPI payments, no such fee is charged. So, if you pay ₹100 using UPI, the shopkeeper gets the full amount. That’s why small shopkeepers love UPI more. Now, the government wants to give this benefit to buyers as well.
How Will the New Plan Work?
If this new scheme is launched, here’s how it might look. Let’s say you are buying something worth ₹100. If you pay through UPI, you might get a ₹2 discount and pay only ₹98. But if you pay using a credit card, you will still have to pay the full ₹100.
This makes UPI more rewarding and credit cards less attractive for daily shopping. It will save you money and make payments faster. This plan will also help in promoting more digital transactions in the country.
When Will This Begin?
The plan is still at an early stage. The government is discussing the idea with payment companies, online stores, and banks. An important meeting is likely to happen in June. If all goes well, this benefit could be launched soon after that. So, UPI users, stay ready! Your shopping is about to become cheaper and smarter.
The Rise of UPI in India
UPI has already taken over the Indian payment space. In the financial year 2024–25, a record-breaking 185 billion UPI transactions were done. The total value of these transactions was over ₹260 lakh crores. That is huge!
In just the last three years, 26 crore new users and 5.5 crore shopkeepers have joined UPI. Today, around 45 crore people in India use UPI regularly. These numbers show how deeply UPI has entered our daily lives.
It is fast, free, and works even for small amounts. Whether you’re buying vegetables or booking flight tickets, UPI has become the go-to choice for millions.
Why This Plan Is a Game Changer
This new scheme by the government can take UPI to the next level. By giving direct savings to users, the government is showing that it supports digital India in every way. If customers get a discount for paying through UPI, more and more people will avoid using cash or cards.
This also reduces the cost of handling cash and makes the payment system smoother. It is good for shopkeepers, customers, and the economy as a whole.
The only challenge is how credit card companies and banks will react. They earn a lot from MDR fees and may not like the idea of UPI getting even more popular. But from a consumer’s point of view, this is a golden opportunity.
Conclusion: UPI Users, Get Ready for Rewards
If you are already a UPI user, then you are one step ahead. And if you’re not, now is the best time to switch. Soon, paying through UPI may not only be easy but also cheaper.
This upcoming scheme could change the way we shop. You’ll save money on every transaction while enjoying fast and secure payments. Just wait for the government’s final announcement. Until then, keep using UPI—and stay tuned for exciting updates…
