India ends free ride for larger transactions on its ubiquitous digital payments network
India will introduce a 0.4% merchant fee on certain UPI payments beginning October 15, marking a new cost for some digital transactions in the country’s widely used instant payment system.
MAIN POINTS
- A 0.4% merchant fee will apply to certain UPI payments.
- The new charge takes effect on October 15.
- The policy affects merchants using India’s UPI payment system.
- It introduces a fee where many UPI transactions have been low-cost or free.
TAKEAWAYS
- Merchants may see higher payment acceptance costs.
- The change could affect pricing or payment preferences.
- UPI remains central to India’s digital payments ecosystem.
- Businesses should prepare for the new fee structure before the deadline.