Cost Pressures on UPI Prompt Call for Merchant Discount Rate Support

New Delhi, Sept 16 – As UPI celebrates more than a decade of real‑time payments, industry executives warn that the platform’s sustainability is under threat from rising operational expenses. Mobiquick’s co‑founder and MD & CEO Bipin Prit Singh noted that the nationwide network, now the world’s largest real‑time payment system, is run by banks and fintech firms that incur significant costs. The proposed Merchant Discount Rate, applied only to transactions above ₹2,000, is designed to offset these costs without affecting small merchants or low‑value payments. The MDR is expected to reinforce the system’s financial health while leaving everyday users untouched.