41% of Merchants Refuse to Pay MDR on UPI, Survey Finds

31 Aug 2026, 7:05 pm · 12d ago · 1 min read · YourStory

A survey of 32,796 participants conducted across Indian districts by LocalCircles found that 41% of merchants refuse to pay any Merchant Discount Rate (MDR) on UPI transactions above ₹2,000. Another 33% stated they would pay 0.25% or less, while 9% do not accept UPI. Zero MDR was introduced in January 2020. A related survey of over 45,000 consumers revealed that 53% of users would abandon UPI for high-value purchases if MDR charges were passed to them, opting instead for credit cards, debit cards, or cash.