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Wire · regulatory

India paves way for return of merchant fees on digital payments

4 August 2026 · By · Wire by Fusion42

Published

4 August 2026

Topic

regulatory

◆ Sectors

Fintech

◆ Geography

India

◆ Source

Read at bfsi.economictimes.indiatimes.com →

◆ Verified

Fusion42 · 5 August 2026 · Fusion42 review

India is considering reinstating merchant discount fees (MDR) on UPI transactions with two possible regulatory frameworks under evaluation, marking a significant shift in the country's digital payments landscape.

This Wire brief sits within Fusion42's coverage of Fintech, and 12 sources have reported it between 19 Jul 2026 and 12 Aug 2026.

◆ ◆ The Wire takeaway

You must prepare for new costs on UPI transactions as India reverses its no-fee stance. Fintech founders should engage payments partners to adapt pricing or risk margin pressure.

◆ Coverage

12 sources · first reported 19 Jul 2026 · latest 12 Aug 2026

◆ Related on Wire

◆ Topics

Fintechindiadigital-paymentsupimerchant-feesregulation