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Amazon Pay India bats for fair MDR on UPI payments to small merchants

Economic Times · 4m

The CEO of Amazon Pay India, Vikas Bansal, has advocated for the implementation of a fair merchant discount rate (MDR) for Unified Payments Interface (UPI) transactions. Bansal believes that smaller players should receive a fair share for the value they contribute to the payment ecosystem. The fintech industry has long been demanding MDR for UPI transactions to ensure their long-term sustainability. The introduction of MDR fees may encourage other fintech firms to compete with dominant players like Google Pay and PhonePe in the UPI payments market. A recent report by Amazon Pay and Kearney revealed that digital transactions are increasingly prevalent in smaller towns in India, with convenience, speed, and rewards driving the growth of digital payments. However, concerns such as fraud and internet connectivity issues could impact the adoption of digital payments in the country.