Survey flags potential shift from UPI to cards on higher-value purchases if MDR returns
A LocalCircles survey of 45,000+ users finds 53% may avoid UPI for transactions above ₹3,000 if merchant discount rates are passed on. The proposed PSS Act changes do not introduce an immediate charge; any MDR move would need separate government notification.
A LocalCircles survey indicates MDR passed to consumers on UPI payments above ₹3,000 could shift higher-value purchases toward credit and debit cards. The proposed PSS Act amendment only enables future government decisions on digital-payment charges; it introduces no immediate MDR.
Why this matters
The survey adds consumer-demand risk to recent policy signals that India may restore UPI MDR, weigh rates up to 0.35% on high-value payments, and allow MDR outside a negative list.
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