Over Half of Street Vendors May Cut UPI Acceptance if 0.4% MDR Is Introduced: ISB Study

Street vendors might reduce UPI use if merchant discount rate is introduced, finds study

Study finds over half of street vendors may curb UPI use if merchant discount rate is imposed, with variations by city tier.

Over half of street vendors may cut UPI acceptance if 0.4% MDR is introduced: ISB study

More than 67% of street vendors in India currently accept UPI payments for transactions. A proposed 0.4% merchant discount rate could lead to reduced acceptance among vendors. Concerns arise particularly for vendor-supplier transactions, as many vendors make payments above ₹2,000. A significant portion of vendors faced additional charges from suppliers and might pass costs onto customers.

Why India Must Re-Evaluate UPI MDR: An ISB Perspective

An Indian School of Business professor highlights the lack of precise data on losses from free UPI transactions, arguing that the benefits, such as user data generation, are often overlooked in the debate over implementing a Merchant Discount Rate (MDR). A recent ISB survey suggests that charging MDR could lead street vendors to revert to cash, despite the government's allowance for MDR on transactions above Rs 2,000 and NPCI's deferral of its i…

Proposed UPI MDR may drive small vendors back to cash: ISB Study

The study said while 67% of the surveyed street vendors accepted UPI payments, only 52% had heard about the proposed MDR framework

Proposed UPI Merchant Charges Risk Driving Small Vendors Back to Cash, Finds ISB Study - Press Network of India

Hyderabad  : A new study by the Indian School of Business (ISB) found that while 67% of surveyed street vendors accept UPI payments, only 52% had heard about the proposed MDR (Merchant Discount Rate) framework. Across city tiers, 45% to 53% said they would reduce UPI acceptance if the charges applied. Conducted by the Centre […]

MDR on UPI: Impact could be much wider, affecting even small street vendors, says ISB study - BusinessToday

A study by the Indian School of Business found that nearly 70% of surveyed street vendors made supplier payments exceeding Rs 2,000 at a time, bringing these transactions within the proposed MDR framework. Vendors would be likely to pass on any additional charges for these wholesale payments or switch back to cash.