Bernstein sees potential 30–40 bps UPI MDR on high-value merchant payments
Any future UPI merchant discount rate would likely be borne by merchants rather than consumers, Bernstein says. A 30–40 bps charge could target transactions above ₹2,000, which represent about 4% of UPI volume but nearly 70% of transaction value; no MDR has been imposed.
Bernstein says any future UPI MDR would likely be paid by merchants, not consumers, at 30-40 bps. High-value payments above ₹2,000 could be targeted, potentially raising acceptance costs for small Indian merchants.
Why this matters
The Bernstein view follows RBI signals that UPI users already absorb costs, a pending merchant-fee decision, and calls for sustainable UPI funding that keep the MDR debate active.
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