The Fintech industry has expressed concern over the incentive cut in the Unified Payment Interface (UPI). He said that under the encouragement, a merchant discount rate (MDR) should be given on the real -time payment system or the incentive outlay from the next financial year.
The government has approved Rs 1,500 crore to promote the Pear-to-Cracha (P2M) transaction on Bhima-UPI and the industry has expressed its concern on this initiative. This was a sufficient decrease for FY 2024.
On the condition of keeping the name secret, the third party -paying Fintech company said, “There is still confusion about how to give recent incentives to small and big businessmen. Will it be applicable to both even after widespread changes in the cost of offline and online merchant? ‘
The Center has decided to give 0.15 percent discount to small businessmen up to Rs 2,000 transaction. No incentive will be given on the expenditure of big businessmen. However, there will be no encouragement for anyone in the event of transactions more than Rs 2,000.
The other official said, “It seems that there will be no encouragement in the event of more than 2,000 transactions for small and big businessmen in this structure. It will probably not be practical for big buyers to give 0.15 percent discount on a price of Rs 2,000 for small businessmen in UPI era.
First Published – March 20, 2025 | 10:59 PM IST