India's Digital Payment Landscape Set for Change with MDR Introduction

The use of digital payments is increasing rapidly in India. Customers are paying easily through UPI at stores. Soundboxes have also become very popular. Now the way to earn money from these soundboxes can change. Actually, after Diwali, Merchant Fee (MDR) is to be applied on some select payments from UPI. After this, digital payment companies can get the option to charge fees on transactions instead of charging shoppers every month for the soundbox. Soundbox is a small electronic device, which gives the shopper information by voice when they get payment from UPI. At present, payment companies charge 125-130 as rent every month after installing this box. But after the implementation of MDR charges on UPI, these month's rent can be closed. BharatPe, Google Pay, MobiKwik, PayTM, PhonePe and Pine Labs can now give these shoppers the option of charging fees on transactions instead of charging shoppers every month for the soundbox. Shoppers can now decide which way to use the soundbox.