The most surprising thing is that all these transactions have been free of cost to the users. So the big question is that how do UPI service providers earn money from? Actually, there are many other ways of their earning.

One source is the Commission income. All of UPI provider companies get commissions from companies for providing services such as mobile recharge, bill payment, DTH activation, etc. Customers are also charged a small amount on the mobile recharges.

The another source is the Subscription revenues. These UPI providers also earn by charging a small transaction fee for each of the POS devices that are installed at kirana stores that allows customers to scan items and make payments.

The third source is by the Quick loan disbursements. These apps have tie ups with the banks and the finance companies and they provide loans such as business loans or personal loans to their users. These loans enable them to earn upto 4 % of the loan amount. For example in the fourth quarter of financial year 2022 2023 Paytm distributed loans worth 12000 crore on its platform on behalf of the banks and financial institutions. They also help banks to sell their credit cards and earn commission in between.

Then they earn through advertisement of different brands or products on their apps such as cosmetics, fashion and electronics.

Thus UPI providers are earning much more from other sources and providing free services to you actually aims to attract more customers to their platforms so that they become more popular for commissions and brand promotions.

The National Payments Corporation of India, which is the operator of the UPI is also taking UPI global. France, Singapore, UAE and many other countries have adopted India’s model. Now if you visit to these nations just scan the QR code there and make payments smoothly. No need to carry their currencies.