Wire · technology
For a small fee, UPI has become stronger
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Fusion42 · 17 September 2026 · Fusion42 review
The National Payments Corporation of India (NPCI) will introduce a 0.4% Merchant Discount Rate (MDR) fee for UPI transactions over Rs 2,000 from October 15, capping fees at Rs 300 per transaction for person-to-merchant payments. The fee aims to create a sustainable revenue flow while excluding critical services and small transactions, promoting competition and better service delivery.
This Wire brief sits within Fusion42's coverage of Fintech, and 27 sources have reported it between 15 Sep 2026 and 5 Oct 2026.
◆ ◆ The Wire takeaway
You must adapt pricing and cost models now that NPCI is charging merchants for high-value UPI transactions. This opens a chance to target smaller merchants and services exempt from fees while preparing for improved sustainability in digital payments.
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27 sources · first reported 15 Sep 2026 · latest 5 Oct 2026
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