Bengaluru, Oct. 13 -- India's move to levy merchant discount rates (MDR) on select UPI transactions is set to bring new costs for some businesses, even as most merchant payments remain free. A new survey suggests the impact will vary widely, with some merchants anticipating substantial monthly bills while many expect the charges to have little effect on their margins.

A merchant survey included in How Urban India Pays 2026, a report by Pahle India Foundation in partnership with Amazon Pay, found that 25% of respondents expect to pay more than Rs.5,000 a month. Another 58% of the merchants expect to pay Rs.1,000 or less, including 13% who expect no charge, suggesting the cost could fall unevenly across businesses. More than 95% of UPI pay...