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UPI Payment The system has changed all the parameters of digital payment in India. In such a situation, no one wants to be left behind in this changing world of payments. Companies do not have any earning option in the UPI model, despite this, UPI service can soon be started on 50 new payment apps in the country.

'National Payment Corporation of India', the government company managing UPI payment service. (NPCI) A senior official of the company says that the merchant discount rate i.e. MDR Despite the absence of UPI (the main source of income for payment service companies), 50 new third party apps in the country want to adopt UPI service for real-time payments.

NPCI's big statement

Dilip Abse, MD and CEO of NPCI, believes that due to lack of income model in UPI, new companies may have been avoiding adopting this system in the last few years, but in the last one year, new companies have come to start UPI payment service. The trend has increased among. We have seen that at least 50 new third party payment apps are now looking to enter the market. He said this in a conversation with Moneycontrol.

He said that currently UPI transactions are completely free in the country. Fintech companies and banks bear the cost of its processing. It will remain free in future also.

What is MDR?

Merchant Discount Rate or MDR is actually a fee that companies charge from merchants who use their services to receive payments. This is the main source of income for credit card companies. There is no MDR facility in UPI payment, because it works on peer 2 peer network. However, some payment companies have found an alternative to MDR for UPI payments by developing soundbox, digital QR code and POS systems.