Wire · operational-macro
MDR on P2M transactions in UPI can be less than 0.25% to compensate stakeholders
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Fusion42 · 6 August 2026 · Fusion42 review
The Indian government has proposed that the merchant discount rate (MDR) on person-to-merchant (P2M) transactions via UPI be capped below 0.25% to ensure fair compensation for stakeholders involved in digital payments.
This Wire brief sits within Fusion42's coverage of Fintech, and 40 sources have reported it between 19 Jul 2026 and 22 Aug 2026.
◆ ◆ The Wire takeaway
Your fintech payments business in India must reconfigure pricing models now that MDR on UPI is set to fall below 0.25%. This will squeeze margins for payment gateways but open broader adoption opportunities for low-cost UPI solutions.
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40 sources · first reported 19 Jul 2026 · latest 22 Aug 2026
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