UPI fee set to raise costs for some merchants as industry awaits rollout

Bengaluru: India’s move to levy merchant discount rates (MDR) on select UPI transactions is set to bring new costs for some businesses, even as most merchant payments remain free. A new survey suggests the impact will vary widely, with some merchants anticipating substantial monthly bills while many expect the charges to have little effect on their margins.

A merchant survey included in How Urban India Pays 2026, a report by Pahlé India Foundation in partnership with Amazon Pay, found that 25% of respondents expect to pay more than ₹5,000 a month.