All you need to know about MDR and why it matters

The introduction of a 0.4% merchant discount rate (MDR) on UPI transactions above Rs 2,000 has stirred the hornet’s nest, sparking fierce debates in the fintech industry and the ecosystem at large. While some stakeholders, including PhonePe’s Sameer Nigam, have said MDR is needed for the long-term growth and sustainability of the UPI ecosystem, some others are pushing back on the move, fearing it would undo all the progress the free digital payment system has achieved so far.