MDR On UPI Is Here, But Who Foots The Bill?

UPI is one of the cheapest ways for Indian merchants to collect digital payments. Now, the economics of India’s biggest digital payment rail is set to change from October 15. After this date, under the new merchant discount rate (MDR) framework, banks and payment providers will charge 0.4% on UPI person-to-merchant (P2M) transactions above ₹2,000, capped at ₹300 for transactions of ₹75,000 and above.