'UPI MDR will lead to transaction splitting, may defeat purpose of India's digital-payment revolution'
What's happening
India introduced a 0.4% merchant discount rate (MDR) on Unified Payments Interface (UPI) merchant payments above ₹2,000 on September 15, while person-to-person transfers and merchant payments up to ₹2,000 remain free. The fee is capped at ₹300 for transactions of ₹75,000 and above. The move ends more than six years of fee-free processing on UPI and is intended to make the system more self-reliant, prompting market reactions that lifted shares of payment firms.
Why it's trending
Because the government moved to monetize high-value UPI transactions after years of free use, sparking debate and a market response.
Signal5.3× its usual volume, confirmed across 1 independent source type.
Story volume
Stories per dayAngles you could write
A 0.4% fee won't kill UPI, but it's already baking in 'transaction splitting' as merchants and customers game the ₹2,000 free threshold.
+2 more angles for this topic with an account — all it takes is your email.
Original sources19
- India Moves to Make UPI More Self-Reliant with Merchant Fee
Few payment systems have grown as quickly—or become as central to everyday commerce—as India’s United Payment Interface (UPI). The real-time payments network has set a benchmark for digital payments systems worldwide, making it possible to move money instantly and at little to no cost to users. But even as UPI has risen to prominence, India’s […] The post India Moves to Make UPI More Self-Re
PaymentsJournalSep 16 - "Indian banks and the Indian payment ecosystem has been bearing the cost of building the UPI infrastructure over the last few years" says Srinivasu MN, Co-founder, BillDesk in conversation with Ritu Singh Watch the full show: https://lnkd.in/d4mGeNrB #UPI #
"Indian banks and the Indian payment ecosystem has been bearing the cost of building the UPI infrastructure over the last few years" says Srinivasu MN, Co-founder, BillDesk in conversation with Ritu Singh Watch the full show: #UPI #
linkedin.comSep 16 - India Brings Merchant Fees to Popular UPI Payment SystemPYMNTS.comSep 16
+16 more sources for this topic
Create an account to follow the full coverage in the live radar.
More rising in Fintech
- Just before Israel launch • Fintech giant Revolut confirms customer data breach by fake government requestsSurging4.7Surging4.7 momentum
- ECB recruits Merchants as Digital Euro moves towards real-world paymentsClimbing3.3Climbing3.3 momentum
- Finastra Owner Weighs Sale or Merger as Valuation Could Reach US$12 BillionClimbing3.3Climbing3.3 momentum
- LIVE: Industry reacts as CLARITY Act blocked after failing to muster enough bipartisan supportSteady1.2Steady1.2 momentum
- Arva AI Unveils Research Lab to Help Banks Automate High-Risk Decision-MakingSteady0.8Steady0.8 momentum
- Enova Scraps Grasshopper Bank Acquisition After Pressure From State AGsClimbing2.8Climbing2.8 momentum