Now Reading: UPI free for consumers; Mastercard sees it as complementary
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UPI free for consumers; Mastercard sees it as complementary
The Payments Council of India (PCI) clarified on Friday that UPI transactions will remain free for consumers and small merchants, including kirana stores, allaying fears of possible charges. The assurance came amid…
The Story in Brief
The Payments Council of India (PCI) clarified on Friday that UPI transactions will remain free for consumers and small merchants, including kirana stores, allaying fears of possible charges. The assurance came amid debate over merchant discount rates. Separately, Mastercard India head Gautam Aggarwal said UPI has helped expand India's digital payments ecosystem and is complementary to its business. He noted India has the world's largest digital payments market in absolute terms but still has room for deeper penetration. Aggarwal added that Mastercard has invested heavily in cybersecurity and praised India's regulatory framework. PCI said any merchant service charges would be commercial arrangements between merchants and providers, not levied on consumers.
The Indian Opinion
The assurance that UPI stays free for small merchants and consumers is welcome, but the infrastructure funding question remains. Banks and payment providers already bear heavy costs, and the debate over merchant charges for larger businesses is not unreasonable. The real test is whether transaction volumes can keep growing without straining the system or forcing hidden costs elsewhere. Who ultimately pays for a free service?
Sources (2): economictimes.indiatimes.com, economictimes.indiatimes.com (2)
This story was synthesised by AI from the 2 sources linked above.
Updated: this story now draws on 2 sources.
