Unified Payments System (UPI) has transformed digital payments in India. Today, UPI payment facility is available at shopping malls and vegetable shops. People are not only buying everyday goods through UPI, they are also paying bills for expensive home appliances, expensive gadgets and designer clothes. But it is also being said that this will increase wasteful expenditure.
Unified Payments System (UPI) has transformed digital payments in India. Today you will find digital payment facility through UPI at big shopping malls and paan and vegetable shops. People are not only buying everyday goods through UPI, they are also paying bills for expensive home appliances, expensive gadgets and designer clothes through it.
Its role is very important in the journey of digitizing India’s payment system and reducing the use of cash. But, this facility has a negative side too. News agency IANS quoted experts as saying that people are getting addicted to unnecessary expenditure due to UPI. They are buying even those things which they do not actually need at that time.
Why is wasteful expenditure increasing through UPI?
The biggest reason for the increase in shopping through UPI/QR code is smartphones. Today, a large population of the country has access to smartphones and data. They pay for anything through smartphones in a jiffy. This is also becoming the reason for wasteful expenditure.
A recent survey by IIT Delhi shows that about 74 percent of people are ‘spending more than necessary’ due to UPI and other digital payment options. Actually, it is much easier to make payments through digital mode than cash. If there is a problem like change in cash, or you do not have that much money at that time, then you stop shopping.
But, there is no problem in UPI or any other digital payment. Whatever money you have in your bank account, consider it to be in your smartphone. You can even spend more than your bank account by using means like credit card. You can also borrow money from friends or relatives immediately.
What are the industry experts saying?
Prabhu Ram, Head of Industry Intelligence Group at market intelligence firm CMR, told news agency IANS, “There is a high possibility of wasteful expenditure increasing due to such convenience, because it is a digital mode. It does not feel like giving cash in hand, how much money you are spending.”
The latest data from the National Payments Corporation of India (NPCI) showed that the number of UPI transactions reached 1,330 crores in April. It has increased by 50 percent on an annual basis. Last year, UPI transactions increased by about 60 percent to a record 11,768 crores.
According to experts, consumer spending is increasing in India. Now people are spending a lot of money on cars, smartphones, TVs and other items. This is boosting the country’s economic growth. However, it is also being seen that due to UPI, people are spending more than necessary on some high-priced items. And this trend is increasing continuously.
