D2C brands, brokers flag concerns over proposed UPI MDR

D2C brands and discount brokers in India are concerned that the proposed merchant discount rate (MDR) on UPI payments will increase costs and squeeze margins, especially during festive seasons with high sales volumes. They argue the MDR framework risks burdening businesses that rely heavily on UPI, which has been a zero-MDR model so far, and seek adjustments to the charge and thresholds.

This Wire brief sits within Fusion42's coverage of E-commerce, and 45 sources have reported it between 19 Jul 2026 and 5 Oct 2026.