India, Aug. 3 -- ICICI Bank has introduced a new fee structure for payment aggregators (PAs) processing Unified Payments Interface (UPI) transactions on merchant platforms. The change, effective from August 1, will impact platforms such as Google Pay, PhonePe, Mobikwik, and Razorpay.

Payment aggregators act as intermediaries between banks and merchants, handling the collection and settlement of payments. According to reports, ICICI Bank has informed PAs that those maintaining an escrow account with the bank will pay 2 basis points per transaction, capped at Rs. 6. For those without an escrow account at the bank, the fee will be 4 basis points, capped at Rs. 10 per transaction.

No charges will apply if UPI payments are directly settled i...