Business »  Topic »  Expect fall in UPI volumes if govt doesn’t reverse MDR order; can hit FDI flows also

Expect fall in UPI volumes if govt doesn’t reverse MDR order; can hit FDI flows also


If fintechs like PhonePe or PayTM can no longer make money through the MDR, and there are going to be more restrictions over how the data of consumers can be used, the government has to ask itself why fintechs or banks will invest in promoting UPI or RUPay cards?

Given most merchants don’t pay MDR anyway, chances are merchants are more afraid that accepting payments via UPI will put them into the tax net as all payments will be routed to their bank accounts.

Though the government stopped commissions – Merchant Discount Rate, or MDR in jargon – on all UPI ...


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