For nearly seven in 10 Hyderabad consumers, the answer is simple: switch to another mode of payment. A LocalCircles survey has found that only 26% of those surveyed would continue using UPI for purchases above Rs 2,000 if merchants pass the Merchant Discount Rate (MDR) charges on to them. Hyderabad: What happens when a UPI payment comes with an extra charge?
The survey found that 71% of respondents would instead opt for cash, cards or bank transfers if UPI costs extra. LocalCircles surveyed more than 6,000 residents from Hyderabad and received 3,128 responses to the question: “If a merchant asks you to pay an additional amount/fee for making a UPI payment above Rs 2,000, what would you most likely do? Of the respondents, 26% said they would continue paying through UPI and bear the additional charge. Another 23% would pay in cash, while 19% each would switch to credit or debit cards. Nearly 6% would opt for bank transfer/NEFT/IMPS, while 3% would ask the merchant for another payment option without an additional charge. None said they would avoid or delay the purchase, while 4% were undecided. Around 70% will move to another mode with no or lower cost. This is higher than the national figure of 14%, but seven in 10 Hyderabad consumers will still leave UPI. Cards together would draw 38% and cash 23%,” said Sachin Taparia, founder, LocalCircles. Hyderabad consumers were more willing than the national average to bear the fee, at 26% against 14%. LocalCircles said it would escalate the findings to Department of Financial Services, Reserve Bank of India and NPCI ahead of the Oct 15 rollout. The survey body further called for close monitoring of essential-service merchants, including schools, hospitals, fuel outlets, ticketing platforms, utility billers and govt portals, and suggested reviewing the 0.4% rate after six months based on actual UPI volumes above Rs 2,000 and any shift towards cash.
“As per our survey, only one out of four residents surveyed will pay the fee. It has urged four safeguards, including making the ban on passing MDR to consumers enforceable, with clear penalties for surcharges or convenience fees. It also sought an easy mechanism for consumers to report such charges and seek refunds through their UPI app or bank.
You Can Also Check: Gold Rate in Hyderabad | Silver Rate in Hyderabad | Bank Holidays in Hyderabad | Public Holidays in Hyderabad | Hyderabad AQI | Weather in Hyderabad | Petrol Price in Hyderabad | Diesel Price in Hyderabad | CNG Price in Hyderabad | LPG Price in Hyderabad Stay updated with the latest Hyderabad news. Download the TOI App.