Payment aggregators, crucial in the widespread adoption of UPI payments, are lobbying for an assured share of the government subsidies provided to banks to maintain the policy of free low-value UPI transactions, according to individuals familiar with the matter.
These aggregators are pushing for their share to be explicitly stated by the government in an official notification, one of the sources indicated. They argue that their significant role in facilitating UPI payments makes them deserving of a clear and guaranteed portion of the financial support currently extended to banks.
In the interim budget, the government allocated ₹3,500 crore to bolster the UPI ecosystem. Payment companies assert that without a fair share of this allocation, their ability to support and sustain free services for low-value UPI transactions would be compromised. They emphasize that their operational costs and contributions to the UPI framework should be recognized and adequately funded.
The aggregators believe that a defined share of the subsidies would ensure their continued participation in the UPI ecosystem, allowing them to cover operational expenses and invest in further improvements. This, in turn, would help maintain the current momentum in the adoption of UPI payments across the country.
As discussions continue, the payment companies are hopeful that the government will acknowledge their crucial role and officially allocate a portion of the subsidies to them. They argue that this step is essential not only for their sustainability but also for the continued growth and accessibility of the UPI payment system.