India's payment regulator weighing 0.4% UPI merchant fee over ₹2,000
India's payment regulator is considering a fee on large UPI transactions, specifically those over ₹2,000.
Thanks to a recent law change, this could soon mean merchant payments above that amount get hit with a 0.4% charge.
If you're just sending money to friends or family, though, it stays free.
With 24 billion UPI transactions worth $311 billion in August alone, even a small fee could make a big difference.
UPI fees could yield ₹100 billion
This move could open up new revenue streams for banks and payment apps like Paytm and Pine Labs, and might help companies like PhonePe and Razorpay as they look toward IPOs.
Banks could get about 40% of the fees collected, with the rest split among apps and service providers.
Since global giants like Walmart-backed PhonePe, Alphabet's Google Pay, Paytm and Meta-backed CRED, the new fees could generate up to ₹100 billion every year, further boosting India's status as a digital payments powerhouse.