The Price of Convenience: India's Digital Payments Ecosystem Takes a New Turn The Reserve Bank of India's (RBI) decision to introduce a Merchant Discount Rate (MDR) on large value UPI transactions has sparked debate about the future of digital payments in India.
Proponents argue that this move will strengthen the sustainability of the UPI ecosystem, while critics fear it will stifle growth and increase costs for both merchants and customers. The new MDR of 0.
4% on P2M UPI transactions above Rs 2,000 may seem like a small price to pay for convenience. However, when applied to large value transactions, this rate can add up quickly. For instance, an MDR of 0.