Wire · technology
India Plans to End 6-Year Fee Waiver on UPI Payments
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Fusion42 · 19 July 2026 · Fusion42 review
India is considering reintroducing a Merchant Discount Rate (MDR) of up to 0.5% on UPI transactions exceeding ₹2,000 after six years of zero fees, affecting only 4% of transactions while exempting micro-enterprises with sub-₹15m annual turnover. The move aims to address a funding gap where current government subsidies cover only 11-14% of actual infrastructure costs.
This Wire brief sits within Fusion42's coverage of Fintech, and 42 sources have reported it between 19 Jul 2026 and 29 Aug 2026.
◆ ◆ The Wire takeaway
If you process UPI payments in India above ₹2,000, your customer acquisition cost just went up 0.5% on those transactions — but this creates an opening: sub-₹15m turnover micro-merchants are now permanently exempt, so you can build a compliance-lite product for that segment and own a market the incumbents must charge.
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42 sources · first reported 19 Jul 2026 · latest 29 Aug 2026
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