MDR on UPI on the cards; Emergent enters unicorn club
The Indian government is considering reinstating the merchant discount rate (MDR) on UPI transactions for large merchants, addressing concerns from the online payments sector. This proposal, which may set a turnover threshold between ₹1-1.5 crore and a transaction fee of ₹2,000, aims to create a viable business model for digital payments, which have been free since January 2020. A decision is expected soon, while peer-to-peer transfers will remain free.