📷 Image: Wikimedia Commons / Maarten Visser from Capelle aan den IJssel, Nederl
Business
UPI to Stay Free for Consumers, Small Merchants Unaffected by MDR Debate, Says Industry Body
✍️ Sikkimexpress
🗓 09 Aug 2026, 09:43 AM
👁 2
An industry association has confirmed that Unified Payments Interface (UPI) will continue to be free for consumers, and small merchants will not be impacted by the ongoing Merchant Discount Rate (MDR) debate.
The industry body has announced that UPI will remain free for consumers, reaffirming the platform's commitment to zero transaction fees for end users.
This statement comes amid ongoing discussions over the Merchant Discount Rate (MDR), which determines the fee merchants pay for processing payments. The body clarified that small merchants will not be affected by any changes in MDR.
While the MDR debate has focused on balancing the interests of merchants and payment service providers, the industry body emphasized that consumer costs will stay unchanged and that small merchants will continue to enjoy the same fee structure.
The decision is expected to provide stability for the growing UPI ecosystem, which has seen rapid adoption across India.
This statement comes amid ongoing discussions over the Merchant Discount Rate (MDR), which determines the fee merchants pay for processing payments. The body clarified that small merchants will not be affected by any changes in MDR.
While the MDR debate has focused on balancing the interests of merchants and payment service providers, the industry body emphasized that consumer costs will stay unchanged and that small merchants will continue to enjoy the same fee structure.
The decision is expected to provide stability for the growing UPI ecosystem, which has seen rapid adoption across India.