ISB study warns 0.4% MDR could curb street-vendor UPI use
In short
An ISB study says more than 67% of street vendors in India accept UPI now. It warns that a proposed 0.4% merchant discount rate could make many vendors stop accepting it.
The worry is stronger for vendor-supplier payments above ₹2,000. The report does not say if the rule will be approved or how many vendors would actually cut UPI.
What the reporting says
An ISB study says more than 67% of street vendors in India currently accept UPI payments, and a proposed 0.4% merchant discount rate could reduce acceptance. The summary says the concern is especially strong for vendor-supplier transactions, where many payments are above ₹2,000, and that some vendors already face extra supplier charges. The immediate consequence could be higher costs or less UPI use, but the study’s full methods and policy response are not stated.
Why it matters
The study suggests that introducing a 0.4% merchant discount rate could make some street vendors reduce UPI acceptance. The publisher summary says more than 67% already accept UPI, and many vendors make supplier payments above ₹2,000, which could make the fee more sensitive. It also notes some vendors may pass costs on to customers. The report does not say whether the proposal will be implemented.