UPI has made our lives way much easier than it was ever before. The use of UPI in India has grown rapidly in recent years. From a supermarket to a local shop, everyone is using the UPI now. India’s UPI has been appreciated by many countries and inspired them to develop the same service for their country as well. But the world leader, the United States of America, is not very happy with India’s UPI. Why So? Read this article to know the reason.
Many countries including Bhutan, Nepal, Malaysia, Singapore, United Arab Emirates, and France have adopted India’s UPI technology. On the other hand, the United States of America, which is regarded as the world’s most technologically advanced country, hates India’s UPI and will never adopt it. The reason behind it is that the United States is a highly interwoven capitalist economy in which the financial market is driven by large corporations and financial institutions rather than the influence of the country’s government.
Even the government takes judgments influenced by these large corporations and financial organizations. So, even if the US government decides to use the UPI, it will be a tremendous problem for those industry giants, which is clearly the primary reason why the USA is not adopting UPI.
If UPI is implemented in the United States, the usage of credit cards, debit cards, or prepaid cards would cease, causing corporations such as MasterCard and Visa to fail. The businesses like Mastercard and Visa charge merchants a commission fee, which is the primary source of revenue for the company. Because UPI does not charge merchants or customers any fees, most merchants will switch to UPI, crushing corporations like Mastercard and Visa.
Wallet applications like Venmo are the most common choice for mobile-to-mobile money transfers in the US. Now, these wallet companies hold the money users keep in their wallet and then demand significant commission fees for large transactions. Again, if UPI is implemented in the US, no one will use these wallet applications, and they will fail.
Well, even if UPI technology is implemented in the United States of America, the structure will be commission-based. As we have mentioned above, the US financial market is driven by large giant businesses and financial institutions and they do nothing until they earn something from their users.
So now you know why the technologically most advanced country in the world, the USA, hates UPI and why it will never adopt it.