AdvertisementIn India, UPI transactions are increasingly favoured for their convenience and zero transaction cost. With proposed changes, however, banks and payment system providers could charge fees on UPI and RuPay debit card payments, and it could potentially be passed on to customers. Lost business for Visa and MastercardSince UPI’s launch in 2016, US payments market intermediaries Visa and Mastercard have cited loss of potential business as consumers in India increasingly turned to free UPI payments rather than using cards. As of December 31, 2025, two US-owned EPA suppliers together processed more than 80% of all UPI transactions,” USTR said. In addition to increasing convenience for users making payments, Pix promotes lower financial costs, increased security and improved customer experience and financial inclusion.”