A new app has launched that allows users to split Unified Payments Interface (UPI) transactions into instalments of ₹1,999, starting October 15. This development comes ahead of a new rule that will impose a 0.4% charge on merchant payments exceeding ₹2,000, aiming to help users avoid the fee. The app’s launch has generated significant discussion on social media platforms, particularly LinkedIn, since the announcement was made on September 17, 2026, according to livemint.com.
The app’s functionality is designed to break down payments just below the ₹2,000 threshold, thereby circumventing the upcoming merchant fee. This approach has sparked debate online, with some users praising the innovation while others raised concerns about potential misuse or fraud risks. The app’s ability to split payments into multiple smaller instalments could attract users looking to save on transaction costs, but critics warn it might be exploited for fraudulent activities, as highlighted in social media reactions documented by livemint.com.
The introduction of this app comes as the National Payments Corporation of India (NPCI) prepares to implement the 0.4% merchant fee on transactions above ₹2,000. This fee aims to offset the costs of UPI infrastructure but has prompted merchants and consumers to seek alternatives. Comparable payment-splitting solutions have not been widely adopted in the Indian market, making this app a novel response to the new fee structure. The debate around the app underscores the tension between regulatory changes and user adaptation in India’s digital payments ecosystem, as reported by livemint.com.
The app’s launch coincides with the October 15 enforcement date for the merchant fee on UPI payments over ₹2,000. The National Payments Corporation of India has confirmed the fee implementation timeline, setting a clear deadline for merchants and consumers to adjust to the new payment landscape, according to livemint.com.