UPI transactions will remain free for consumers, says Phonepe CEO

Sameer Nigam, CEO, PhonePe
| Photo Credit:
MURALI KUMAR K

PhonePe, preparing for its IPO, has confirmed that UPI transactions will stay free for users, emphasizing that discussions about a sustainable business model aim to strengthen the ecosystem against emerging fraud and cyber threats.

Key Takeaways

• PhonePe CEO Sameer Nigam confirmed UPI transactions will remain free for users ahead of the company’s IPO.
• He said discussions about a sustainable business model aim to strengthen the ecosystem against fraud and cyber threats.
• The UPI network currently processes more than 9,000 transactions every second.
• Nigam emphasized ongoing investment is essential to sustain and grow the payments infrastructure.

During the current uncertainty about possible fees on UPI transactions, Sameer Nigam, PhonePe’s CEO, stated on his X (formerly Twitter) account that Indian users will incur no charges for UPI payments, which will remain free.

The ongoing discussion concerning the UPI ecosystem does not seek to alter its core design principles; rather, it focuses on establishing viable business models atop a payment network that processes more than 9,000 transactions each second.

“Ongoing investment and capability development are essential. Building one of the world’s safest and most dependable payment systems has engaged banks, payment firms, fintechs, NPCI, and the RBI for the past ten years. It is a continual effort demanding substantial resources daily,” he noted.

Addressing Fraud Risks

With transaction volumes rising, the UPI ecosystem becomes a more tempting target for malicious actors. Consequently, a major expense for UPI involves combating fraud and ensuring perpetrators are held accountable.

“We must invest in constructing and sustaining the necessary resilience within the system. This entails keeping the UPI platform operational around the clock, regardless of traffic spikes, which is crucial to allow millions of Indians to carry out everyday purchases without interruption,” Nigam stated.

Finally, funding innovation is essential to ensure that the UPI system remains a state‑of‑the‑art technology platform capable of meeting the evolving needs of businesses and consumers for years ahead,” he added.

Since these costs are largely technology‑ and labor‑intensive, they are borne by the ecosystem; its capacity to finance them guarantees that consumers enjoy a smooth, hassle‑free digital payment experience,” he remarked.

The discussion about funding centered on future‑proofing the UPI system so it can serve the economy reliably for many decades to come,” Nigam added.

Published on August 8, 2026