Wire · operational-macro
UPI Transactions Jump 27% In First Half Of FY27 Ahead Of New MDR Rules
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Fusion42 · 3 October 2026 · Fusion42 review
India's UPI transactions grew 27% year-on-year in the first half of FY27, reaching nearly 145 billion transactions, driven by strong consumer and merchant adoption. From October 15, new Merchant Discount Rate (MDR) rules will apply a 0.4% fee on merchant UPI payments above Rs 2,000, exempting person-to-person transfers and most small merchants to create revenue flow in the ecosystem.
This Wire brief sits within Fusion42's coverage of Fintech, and 27 sources have reported it between 15 Sep 2026 and 5 Oct 2026.
◆ ◆ The Wire takeaway
Merchants in India must prepare for new UPI fees on transactions over Rs 2,000 starting mid-October, forcing payment startups and fintechs to pivot pricing models and merchant acquisition strategies. The surge in transaction volume signals expanding market opportunity but tightens revenue structures for providers relying on merchant payments.
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27 sources · first reported 15 Sep 2026 · latest 5 Oct 2026
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