MDR debate returns as UPI turns 10; govt subsidies cover just 11% of industry costs
Ten years in, UPI's zero-MDR model faces fresh scrutiny. Government incentives offset only 11% of digital payment industry costs and 14% of potential revenue across FY22-FY25. Policymakers weigh a calibrated MDR on larger merchants above ₹2,000 to fund infrastructure while shielding small merchants.
MDR debate resurfaces as UPI marks 10 years. Government incentives covered only 11% of digital payment industry costs FY22-FY25. Policymakers weigh calibrated MDR on larger merchants to sustain infrastructure investment, while protecting small merchants and consumers.