Bengaluru, Nov. 13 -- A zero Merchant Discount Rate (MDR) model would not be sustainable for the Unified Payments Interface (UPI) over the long term, as the digital payments infrastructure requires continued funding for operations and innovation, Sumit Agarwal, founder of business accounting platform Vyapar, said.

Speaking to ANI, Agarwal said the structure balances the interests of consumers and small merchants while allowing banks and payment service providers to invest in improving the payment infrastructure.

"Without the MDR, UPI wouldn't have been sustainable for a long period of time. This will not only help it sustain but also help a lot of other private players as well as the government to come up with new innovations that can i...