UPI Payment: The government is planning to offer a discount for customers who make payments through UPI. This initiative aims to make UPI transactions more attractive than credit card payments.
Credit cards often charge a Merchant Discount Rate (MDR) of 2-3%, meaning if you pay Rs 100, the shopkeeper only receives Rs 97-98.
However, with UPI payments, there is no fee, so the shopkeeper receives the full Rs 100. While many shopkeepers absorb this cost, some pass it on to customers.
Direct Benefits for UPI Users
The Ministry of Consumer Affairs is working on a plan where customers making UPI payments will directly benefit from discounts.
For example, a product costing Rs 100 with a credit card could be available for Rs 98 through UPI.
This move aims to encourage digital payments and give rewards to customers for using UPI.
Important Meeting in June
Before implementing this plan, the government will meet with relevant stakeholders in June 2025.
These talks will involve e-commerce companies, the NPCI, banks, payment service providers, and consumer organizations.
The final plan will only be decided after these discussions. However, not everyone agrees with the idea.
The Payments Council of India has previously requested that MDR be applied to UPI and RuPay debit cards, but the government has not approved this yet.
UPI Transactions Will Be Faster
Starting June 16, 2025, UPI transactions will be completed in just 15 seconds, compared to the current 30 seconds. This change will make digital transactions faster and more efficient.
UPI Usage Is Growing Rapidly
In the financial year 2024-25, UPI saw 185.85 billion transactions, marking a 42% increase from the previous year.
The total transaction value reached ₹260.56 lakh crore, showing a 30% annual increase.
