In a LocalCircles survey, 76% of respondents to a hypothetical question said they expected to use cash, cards or bank transfer most often for purchases above ₹2,000 if UPI payments resulted in an additional cost. That is a stated expectation, not evidence that those users have switched payment methods. The survey release also describes a planned merchant discount rate (MDR) and says consumers are not supposed to bear it.
What the 76% figure measures
LocalCircles asked respondents: “Going forward, for purchases above INR 2,000, which payment mode do you expect to use most often if UPI payments result in an additional cost?” Of 37,654 responses to that question, 76% selected a mode other than UPI: cash, a card or bank transfer/NEFT/IMPS. The finding reflects what respondents said they expected to do under a condition; it does not measure actual payment behavior or establish that 76% will switch.
The response shares break down as follows:
| Expected most-used mode if UPI costs extra | Share of responses |
|---|---|
| Credit card | 26% |
| Cash | 26% |
| Debit card | 13% |
| Bank transfer/NEFT/IMPS | 11% |
| UPI | 20% |
| Unsure | 4% |
Credit cards and cash were tied as the most common individual choices at 26% each. Adding the non-UPI modes gives the reported 76%: cards account for 39 percentage points, cash for 26 and bank transfers for 11. UPI itself was selected by 20%; 4% were unsure. LocalCircles’ October 2, 2026 release reports the question and results.
What respondents said they would do if charged immediately
A separate LocalCircles question asked what a respondent would most likely do if a merchant asked for an additional fee on a UPI payment above ₹2,000. It received 31,206 responses, so its denominator differs from the longer-term question.
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| Immediate response to a merchant asking for an added fee | Share of responses |
|---|---|
| Pay in cash | 27% |
| Use a credit card | 26% |
| Use a debit card | 14% |
| Continue with UPI and pay the extra amount | 14% |
| Ask for an option without an added charge | 9% |
| Use bank transfer/NEFT/IMPS | 4% |
| Avoid or delay the purchase | 2% |
| Could not say | 4% |
In this immediate hypothetical, cash was the most selected response at 27%, while 14% said they would continue using UPI and bear the added amount. The results indicate that many respondents said they would seek another payment method or an option without an added fee if asked to pay one. They remain answers to a hypothetical, not a record of what shoppers did. LocalCircles’ release gives the question wording and response shares.
How the survey relates to the reported UPI fee framework
The survey’s extra-cost scenario is not the same as a rule requiring customers to pay an extra charge. LocalCircles says a 0.4% MDR was set to apply from October 15, 2026, to person-to-merchant UPI payments above ₹2,000, and describes exemptions and restrictions on passing that cost to consumers. Its release says banks were directed to ensure merchants do not pass the cost on. India Today’s October 1, 2026 coverage likewise describes the change as prospective and notes the consumer-protection position.
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As of October 3, 2026, the stated start date was still in the future. These policy details are reported by LocalCircles and India Today; the official legal notification is not independently established here. LocalCircles also attributes to Finance Minister Nirmala Sitharaman the September 22, 2026 statement that “the responsibility does not lie with the customer”.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Who responded—and what the sample can show
LocalCircles says its platform survey collected more than 67,000 responses from UPI users across 291 Indian districts. Participants were registered on the platform and validated as citizens. The release describes respondents as 63% men and 37% women; 45% were from tier 1 districts, 28% from tier 2 and 27% from tier 3–5 districts.
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One free scan finds every outdated or missing driver and matches the right update for your exact hardware.Free scan · exact hardware matchThose details describe the people who responded, but the release does not establish that the survey used a probability sample or population weighting. The percentages should therefore be read as the responses of surveyed UPI users, not as a representative estimate of every UPI user in India.
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