UPI's New Fees: A Double Edged Sword for Merchants and Consumers The National Payments Corporation of India (NPCI) has introduced merchant discount rates (MDRs) on Unified Payments Interface (UPI) transactions, effective October 15.
The new framework imposes a flat Rs 5 charge on certain categories of merchants, while others will pay a 0. 4% variable rate. On the surface, this move appears to standardize and streamline digital payments.
A closer look reveals a complex web of implications that affect not just merchants but also consumers.