New Delhi: The UPI payment system has revolutionized digital payments in India. No one wants to be left behind in this changing world of payments. UPI services may soon be launched in 50 new payment apps in the country. As a result, common people will benefit more.
The government body that administers the UPI payment service is the 'National Payments Corporation of India' (NPCI). The company says that 50 new apps in the country want to adopt UPI services for real-time payments despite the lack of merchant discount rate (MDR) (the main source of revenue for payment service providers).
Dilip Abse, MD and CEO, NPCI, points out that the lack of revenue model in UPI has kept new companies from adopting the system in the past few years. But in the past year, new companies have started UPI payments. He said at least 50 new third party payment apps are now looking to enter the market.
In an interview to Moneycontrol, he also mentioned that currently, transactions through UPI are completely free in the country. Fintech companies and banks bear these transaction processing fees. He said that this service will be available for free in the future.
Note that Merchant Discount Rate or MDR is actually a fee that is charged to companies. It is also a major source of income for credit card companies. There is no MDR facility on UPI payments. Some payment companies have found alternatives to MDR for UPI payments by developing soundboxes, digital QR codes and POS systems.
