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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 45 sources have reported it between 19 Jul 2026 and 5 Oct 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

45 sources · first reported 19 Jul 2026 · latest 5 Oct 2026

◆ Related on Wire

◆ Topics

Fintechindiadigital-paymentsupimerchant-feesregulation