New 0.4% MDR on UPI P2M, 76% would shift payments
Business
A new 0.4% MDR on UPI Person-to-Merchant (P2M) transactions above ₹2,000 is set to take effect from October 15, 2026, and it could really shake up how we pay.
In a LocalCircles survey, 76% of over 67,000 users said they would move their larger payments off UPI if it carries an extra cost.
Consumers split, merchants oppose fee
The survey found that for bigger spends, 26% would go with cash and 26% would use credit cards instead of UPI.
Merchants aren't thrilled either: only 17% said they'd cover the fee themselves, while most are against it.
If this goes through, expect more people to pull out their wallets instead of scanning a QR code.