Govt moves to allow MDR; Qcomm braces for festive rush
The Indian government proposed amendments to the Payment and Settlement Systems Act that could reintroduce merchant discount rates (MDR) on select UPI transactions, allowing banks and fintechs to recover technology investments. This change aims to address profitability issues faced by UPI firms, which have seen zero MDR since January 2020, with fees potentially set at 5-7 basis points for large merchants. As the festive season approaches, companies like Blinkit are preparing for a surge in orders, highlighting existing warehousing challenges in the ecommerce sector.