New Delhi, Sept. 16 -- The National Payments Corporation of India (NPCI), on Tuesday, reintroduced merchant discount rate (MDR) on some person-to-merchant (P2M) transactions made via the unified payments interface (UPI) platform. The MDR is expected to be split between ecosystem players. However, the charge has created a lot of noise around its potential impact on UPI usage. Mint takes a look

MDR on UPI payments is not expected to significantly impact overall transaction volumes, given that only 4% of total UPI transactions are expected to be eligible for such a charge, as per the finance ministry. All person-to-person (P2P) UPI transactions and P2M transactions of upto Rs.2,000 will continue to be free.

MDR is being reintroduced select...