India weighs 0.3%–0.5% merchant fee on select high-value UPI payments
India is considering reintroducing a merchant discount rate (MDR) on certain high-value Unified Payments Interface (UPI) transactions, potentially charging eligible large merchants 0.3%–0.5%. The proposal would apply to payments above 2,000 rupees ($20.97) for merchants with annual turnover exceeding 15 million rupees, shifting UPI away from its current zero-fee model. Transactions above 2,000 rupees represent 4% of merchant payment volumes but about 67% of transaction value, according to a Jefferies report.
