UPI Introduces Merchant Fees | Tech News

India’s UPI payment system is introducing merchant fees for transactions over 2,000 rupees — a move aimed at making the digital infrastructure financially sustainable, similar to credit card networks. While small payments stay free, larger ones will now carry a 0.4% fee, funded by NPCI to cover cybersecurity, fraud prevention, and rural infrastructure expansion. Critics fear it could hurt UPI’s low-cost appeal, but supporters see it as vital public infrastructure that drives formalization and cashless growth. Crucially, merchants can’t pass fees to customers, and fintech giants like Paytm and PhonePe stand to benefit from new revenue streams — with how businesses adapt being the real test.

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This is an automated, high-level news summary based on public reporting.
Sources:
https://techcrunch.com/2026/09/15/india-ends-free-ride-for-larger-transactions-on-its-ubiquitous-digital-payments-network/

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