# India weighs merchant fees on some UPI payments

_Monday, August 17, 2026 at 3:25 PM EDT · Power, Products · Developing · Tier 2 — Notable_

![India weighs merchant fees on some UPI payments — Primary](https://ichef.bbci.co.uk/news/1024/branded_news/250b/live/07d59750-96ed-11f1-bdf3-57bf9a99cb46.jpg)

India is considering a merchant discount rate of 0.3% to 0.5% on some higher-value UPI transactions at larger businesses, according to the report. The government has not decided the rate or exact scope. It says consumer and person-to-person payments would remain free, while one option under discussion would target transactions above 2,000 rupees at larger merchants. UPI processed 23.6 billion transactions worth 29.87 trillion rupees in July, the report says.

## Sources

- [Hacker News: Front Page](https://www.bbc.com/news/articles/c8xnwqe00v1o)

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Retrieved: 2026-08-18T02:09:08.228Z
Publisher: Tech & Business (techandbusiness.org)