UPI charges face massive backlash: Survey exposes public anger
A shocking new survey reveals only 14% of people are willing to pay UPI charges, raising big questions over digital payments future.
New Delhi (The Uttam Hindu): A 0.4% Merchant Discount Rate (MDR) is set to apply from October 15, 2026, on eligible person-to-merchant UPI transactions above ₹2,000. The proposed change has raised concerns among consumers and merchants with a recent survey indicating that many users may consider switching to other payment methods if the additional cost is passed on to them.
A nationwide survey of more than 67,000 UPI users across 291 districts found that 76% of respondents would not be willing to pay an additional charge on transactions above ₹2,000. Among those considering alternatives, 27% said they would return to cash, while 26% preferred credit cards and 14% debit cards. Some respondents also mentioned bank transfers and other payment methods as alternatives.
The issue has also caused concern among merchants. A survey involving more than 32,000 merchants found that 41% were unwilling to bear the MDR themselves, while 17% said they would absorb the cost. The Finance Ministry has clarified that the MDR is not a government tax and that customers should not be charged separately for it. Banks have been directed to ensure that the cost is not passed on to consumers, while the impact of the new system on large-value digital payments remains to be seen.