India delays digital payments fee rollout amid retailer pushback
India has postponed the introduction of a merchant fee on its Unified Payments Interface (UPI) network, citing retailer pushback and the upcoming festive shopping season.
India has postponed the introduction of a merchant fee on its Unified Payments Interface (UPI) network, citing retailer pushback and the upcoming festive shopping season. The National Payments Corporation of India (NPCI) said the 0.4 % fee on eligible transactions over ₹2,000 (about $21) that was set to launch on October 15 will now roll out after Diwali, though a new date has not been announced.
The fee would mark a major shift from UPI’s long‑standing policy of free merchant payments. NPCI had planned to exempt transactions of ₹2,000 or less and small merchants with monthly UPI receipts below ₹100,000, and to cap the fee at ₹300 (≈ $3) for larger payments. In September alone, UPI handled 24.07 billion transactions worth ₹29.37 trillion (≈ $305 billion).
Some retailers and petrol‑pump operators warned they might stop accepting UPI if the charge took effect. The change matters because UPI powers most digital payments in India, with Google Pay, PhonePe, and Paytm as major app providers. Introducing a fee could alter merchants’ cost structures
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Original publication: 13 October 2026 18:55