On October 2, shoppers in India may face an unexpected hurdle: mobile electronics stores will stop accepting UPI payments. This isn't a glitch or a technical failure — retailers have declared a 'No UPI Day' protest against the current terms of working with the payment system.
What Retailers Are Demanding
The protest is organized by mobile device seller associations, who say that transaction costs and KYC verification requirements make accepting UPI unprofitable for small outlets. Key grievances include:
- fees that retailers say fall on the seller rather than the buyer;
- tight deadlines and the volume of data required for KYC when connecting to UPI;
- insufficient support from banks and payment aggregators in disputed transactions.
According to protest participants, if the situation doesn't change, many stores will be forced to either raise prices or revert to cash and cards, slowing down retail digitization.
Who Will Be Affected by 'No UPI Day'
Primarily customers who are used to paying for smartphones and accessories via UPI. On the day of the action, such outlets may accept only cash, bank cards, or other payment instruments. Online stores and large chains will likely continue as usual — the protest mainly affects offline retail.
For tourists and foreigners using Indian payment apps or cards, the situation could be an unpleasant surprise when trying to buy a local SIM card or gadget. In this case, it's worth planning ahead with cash or an international card.
Why This Matters for the Market
UPI is one of the fastest-growing payment systems in the world, and its development largely relies on small and medium businesses. If retailers' discontent is not addressed, it could hit the pace of cashless payment adoption in India. Moreover, such actions show that even in mature digital ecosystems, unresolved issues of cost distribution between banks, payment aggregators, and sellers remain.
"We are not against digital payments, we are against shifting all costs onto the seller's shoulders," organizers quoted a representative of one of the associations as saying.
What Buyers Should Do
- Check in advance with a specific store whether they accept UPI on October 2.
- Have an alternative on hand: cash, a debit or credit card.
- If you're a tourist, verify that your international card works in India and have a backup payment method.
For those who use virtual cards to pay for foreign services, this episode is a reminder: diversifying payment instruments reduces risks. It's always useful to have more than one payment method, especially when traveling.
Disclaimer: This material is for informational purposes only and does not constitute financial advice.
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