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The Hidden US Pressure Is The Reason Why Indians May Soon Have Transaction Charges ...
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Fusion42 · 29 August 2026 · Fusion42 review
India amended the Payment & Settlement Systems Act to allow fees on high-value UPI merchant transactions, ending the zero-MDR mandate. This change addresses financial sustainability concerns but is widely seen as a response to US trade pressure, which views India's free digital payments as a barrier to American card networks like Visa and Mastercard.
This Wire brief sits within Fusion42's coverage of Fintech, and 13 sources have reported it between 5 Aug 2026 and 17 Aug 2026.
◆ ◆ The Wire takeaway
You need to prepare for new merchant transaction fees on UPI as India aligns with US trade demands, opening revenue paths but complicating free payment models. Consider how this alters your customer cost structure and competitive positioning in Indian digital payments.
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13 sources · first reported 5 Aug 2026 · latest 17 Aug 2026
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