Wire · operational-macro
UPI fee set to raise costs for some merchants as industry awaits rollout
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Fusion42 · 14 October 2026 · Fusion42 review
India's National Payments Corporation postponed the rollout of a new merchant discount rate (MDR) on select UPI transactions set to raise costs for some merchants, with a 0.4% fee on transactions above ₹2,000 capped at ₹300. While most UPI payments to merchants remain free under exemptions, up to 25% of merchants expect substantial monthly MDR charges.
This Wire brief sits within Fusion42's coverage of Fintech, and 45 sources have reported it between 19 Jul 2026 and 15 Oct 2026.
◆ ◆ The Wire takeaway
You face new cost pressures as India's UPI introduces merchant fees above ₹2,000, shifting some offline merchants to paid transactions. Now is the time to reassess your merchant payment strategies to avoid margin erosion or losing customers to alternative digital payments.
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45 sources · first reported 19 Jul 2026 · latest 15 Oct 2026
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