Wire · operational-macro
Will traders pass on MDR fees to UPI users? 41% unwilling to bear burden: Survey
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Fusion42 · 1 September 2026 · Fusion42 review
A survey in India found 41% of merchants are unwilling to absorb proposed Merchant Discount Rate (MDR) fees on high-value UPI payments above Rs 2,000, while 53% of consumers indicated they might shift away from UPI if these charges affect their payments. The government is considering introducing about a 0.3% MDR to help cover UPI's growing operational costs.
This Wire brief sits within Fusion42's coverage of Fintech.
◆ ◆ The Wire takeaway
You face a choice as a fintech founder targeting payments: the government's push for MDR fees may open a revenue path but risks customer and merchant resistance that could disrupt user retention. Adjust your pricing models and merchant partnerships fast to navigate new payment frictions.
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1 source · 1 Sep 2026
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