Wire · operational-macro
Decline in UPI Usage as Cash Transactions Increase in India
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Fusion42 · 17 August 2026 · Fusion42 review
India's growth rate in UPI transactions has slowed following the introduction of a Merchant Discount Rate (MDR) on UPI payments, while cash transactions have seen a concurrent rise. The regulatory change targets merchants and has sparked concerns over potential consumer burdens and economic impacts, especially in rural and small merchant segments.
This Wire brief sits within Fusion42's coverage of Fintech, and 40 sources have reported it between 19 Jul 2026 and 22 Aug 2026.
◆ ◆ The Wire takeaway
The new merchant fee on UPI payment transactions changes cost structures for India’s payment networks and merchants. You need to evaluate exposure to weakening digital payment growth and rising cash demand, especially if serving rural or small business clients.
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40 sources · first reported 19 Jul 2026 · latest 22 Aug 2026
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