“UPI merchant fees explained: Will you pay extra on Google Pay, PhonePe and Paytm from October 15?”, OpenTheMagazine, 16 Sep 2026.
“UPI users woke up to a question many thought they would never have to ask: Is free UPI coming to an end?
The answer is both yes and no.
The Indian government and the National Payments Corporation of India (NPCI) have announced a new Merchant Discount Rate (MDR) framework for certain UPI transactions from October 15, 2026. The move marks the first major shift away from UPI’s zero-fee model after years of explosive growth. But despite the headlines, most everyday users will continue to make UPI payments without paying any charges.
UPI MDR rule: What has changed from October 15?
Under the new framework, a 0.4% MDR will apply to person-to-merchant (P2M) UPI transactions above Rs 2,000. The fee is capped at Rs 300 for very large transactions above Rs 75,000.
In simple terms, if you use UPI to pay a merchant, retailer, e-commerce platform or business and the transaction crosses the threshold, a merchant fee can now be levied within the payments ecosystem…….”
Read the full article at OpenTheMagazine.
