business πΈ UPI's fee structure is changing with a tiny MDR
A 0.4% Merchant Discount Rate is being introduced for certain UPI merchant transactions above Rs 2,000. This change is happening across India, impacting merchants who process higher-value digital payments. The new framework exempts peer-to-peer transfers and small merchants below a Rs 1 lakh monthly limit. This shifts the model from implicit subsidies to a more commercially financed infrastructure. The impact depends on merchant behavior and psychological effects on payment choices. πΈ