Negative impactSector
'Taken From Merchant Side': DFS Trashes UPI User's Claim Of MDR Getting Passed On To Customers
NDTV Profit 1 hr ago·16 Sept 2026, 12:29 pm
Digital Financial Services (DFS) has pushed back against a customer complaint regarding Merchant Discount Rates (MDR). The customer claimed that fees charged to merchants for UPI transactions were being passed on to consumers. DFS clarified that these charges are levied on the merchant side and are not a cost borne by the end user.
This clarification is important for retail investors as it highlights the fee structure of digital payments. While UPI transactions are generally free for users, credit card-linked UPI payments may carry different fee implications compared to direct bank transfers. Investors should monitor how payment networks manage these costs to understand their impact on the broader fintech ecosystem.
Moving forward, the focus will be on the regulatory stance regarding MDR. With the government pushing for zero MDR on UPI, the industry is likely to see further discussions on how to balance the costs for merchants and the benefits for consumers.
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- Category: Sector.
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