Survey: 53% may avoid UPI payments above ₹3,000 if MDR is reintroduced
A LocalCircles survey of more than 45,000 respondents across 322 districts suggests potential merchant discount rates on UPI could alter high-value checkout behaviour, with users considering cards, bank transfers or cash instead.
A LocalCircles survey indicates 53% of UPI users may shift payment methods for transactions above ₹3,000 if proposed legal changes enable merchant discount rates. Any MDR would be borne by merchants, potentially affecting payment costs and checkout preferences.
Why this matters
The survey adds friction risk to UPI's recent growth pattern: July payment value reached a record ₹29.9 lakh crore, while volumes rose 4% MoM to 23.66 billion transactions.
Omni-channel is accelerating, up 204400% QoQ.