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Wire · operational-macro

UPI should remain free: Expert on why MDR could push merchants and consumers back to cash

Published

22 August 2026

Topic

operational-macro

Sectors

Fintech

Geography

India

Source

Read at businesstoday.in

Verified

Fusion42 · 22 August 2026 · Fusion42 review

R S Sharma argues that UPI should remain free for merchants and consumers, warning that introducing a Merchant Discount Rate (MDR) could push them back to cash and undermine the digital payments ecosystem in India. He suggests funding UPI infrastructure through savings generated by digital payments rather than charging users.

This Wire brief sits within Fusion42's coverage of Fintech, and 41 sources have reported it between 19 Jul 2026 and 22 Aug 2026.

◆ The Wire takeaway

You face a sudden risk as charging UPI transactions could undo years of digital adoption among small merchants and consumers. That cost pressure opens a clear opportunity to pitch alternative funding models that protect free UPI access.

Coverage

41 sources · first reported 19 Jul 2026 · latest 22 Aug 2026

Topics

Fintechupidigital-paymentsmdrfintech-regulationindia