India delays a planned merchant fee on UPI payments after retailer pushback
What it costs to keep the world's busiest payment network free for merchants.
The National Payments Corporation of India postponed the October 15 start of a 0.4% fee on eligible merchant UPI transactions above ₹2,000 (about $21), citing the festive shopping season; it will now come after Diwali, with no new date. Retailers and petrol pump operators had opposed it, some saying they would stop accepting UPI. The fee would end a policy, in place since January 2020, of keeping UPI free for merchants. UPI processed 24.07 billion transactions worth ₹29.37 trillion (about $305 billion) in September.
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Unified Payments Interface
After exploring India delays digital payments fee rollout amid retailer pushback, the system at stake is Unified Payments Interface.
India's instant payment system, developed by the NPCI in 2016, which moves money between bank accounts using only a UPI ID.
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