Srinagar, Sept. 17 -- India's UPI ecosystem is entering a new phase as Merchant Discount Rate (MDR) is introduced for certain high-value merchant transactions.
While person-to-person payments remain free and merchant transactions up to Rs.2,000 attract zero MDR, specified merchant payments above Rs.2,000 can attract 0.4% MDR, with a maximum of Rs.300. Certain sectors such as telecom, fuel, insurance and railways have a Rs.5 flat MDR for eligible transactions.
The impact could be significant because although transactions above Rs.2,000 account for only around 4% of merchant transactions, they represent roughly two-thirds of P2M transaction value.
So, what does MDR mean for merchants, payment companies and consumers and what does it mean f...