SBI plans 0.4% UPI merchant fee above ₹2,000 from October 15, 2027
SBI is preparing to implement a 0.4% UPI merchant fee on transactions above ₹2,000 from October 15, 2027, to partly offset infrastructure costs. It declined Apple Pay participation on commercial grounds; 96% of person-to-merchant UPI volumes remain exempt, and customers face no charges.
Read the source at CNBC-TV18 · CompaniesAlso reported by Moneycontrol (moneycontrol.com)
Channel facts
| Essential-services flat transaction fee: | ₹5 |
|---|---|
| Essential-services per-transaction fee cap: | ₹300 |
| SBI UPI volume share: | 27% |
What it means for online and offline
Use SBI’s commercially driven rejection of Apple Pay to stress-test wallet partnerships and prioritize payment deals with demonstrable merchant savings and sustainable cost-sharing.
Signals to track
- SBI publishes final fee terms and confirms the implementation date
- Competing acquirers announce UPI merchant pricing offers
- Affected merchants' UPI payment share changes for purchases above ₹2,000
- SBI or Apple announces a change in Apple Pay participation
Likely next moves
The desk's read of what comes next — analysis, not reported by the source.
- SBI is likely to clarify merchant coverage and collection mechanics for the planned 0.4% fee before October 15, 2027.
- Merchants affected by SBI's fee are likely to compare payment costs across channels and steer higher-value purchases toward cheaper options where available.
- SBI's merchant-acquiring rivals may pitch lower-cost acceptance to affected merchants, increasing competition for higher-ticket accounts.
- Apple may pursue Apple Pay partnerships with other banks rather than depend on SBI reversing its commercial decision.
The counter-case
This is not yet evidence of market-wide UPI repricing or a meaningful omni-channel shift. A bank-specific proposal could have narrow coverage, face policy barriers, or never take effect. If 96% of merchant transaction volumes remain exempt and customers pay nothing, checkout behavior may barely change. Apple Pay non-participation is a separate commercial decision, not corroboration of broader UPI fee adoption.