Four in five Mumbaikars unwilling to bear MDR fee on UPI payments above ₹2,000: study
A study by LocalCircles reveals that most Mumbaikars are unwilling to pay a 0.4% merchant discount rate (MDR) on UPI transactions exceeding ₹2,000. Many consumers indicate they would switch to cash or credit cards if merchants pass this new fee on to them.
Why it matters
The introduction of fees on previously free digital payment services could significantly impact India's digital economy and consumer behavior.
As many as four in five Mumbaikars are unwilling to pay the MDR fee on using UPI for payments above ₹2,000 if the merchant passes it on, finds a study conducted by LocalCircles. The study released on Thursday (October 1, 2026) shows 29% of Mumbai residents will switch to a credit card, 20% will pay in cash and 17% will switch to a debit card if charged a fee on UPI payments above ₹2,000.
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