Wire · regulatory
Indian Govt Serves up the UPI MDR Removal That the Payments Industry Has Been Waiting For
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Fusion42 · 5 August 2026 · Fusion42 review
The Indian government has removed the Merchant Discount Rate (MDR) for Unified Payments Interface (UPI) transactions, a significant regulatory change impacting the payments industry by potentially altering transaction cost structures and merchant incentives.
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◆ ◆ The Wire takeaway
The cost of accepting UPI payments just dropped to zero for merchants, shifting your pricing model and competitive landscape if you offer payment acceptance or facilitation in India. Banks and payment platforms will need new incentives to maintain or grow merchant volumes now.
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