Neutral impactEconomy
UPI Volumes To Remain Unaffected; 10% Merchants May Pass On Costs, Says NPCI CEO
NDTV Profit 1 hr ago·24 Sept 2026, 2:48 pm
The National Payments Corporation of India (NPCI) has clarified that the introduction of merchant discount rates (MDR) on UPI transactions will not significantly impact transaction volumes. According to CEO Dilip Asbe, the system is robust enough to handle the change without a drop in usage. This stability is crucial for the digital payment ecosystem, which has seen rapid growth in recent years.
For investors, this news suggests that the digital payments sector is likely to remain resilient. While some merchants may eventually pass on a portion of these costs to consumers, the overall volume of transactions is expected to stay steady. This stability provides a predictable environment for businesses operating in the fintech space.
Investors should keep an eye on how merchants adapt to the new charges. If costs are passed on effectively, it could lead to a slight increase in transaction values. However, the primary focus should remain on the stability of the digital payments infrastructure and its ability to support the growing volume of transactions.
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- Category: Economy.
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