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NPCI CEO Asbe says 10% of UPI value linked to non card merchants may face consumer pass through risk

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NPCI CEO Asbe says 10% of UPI value linked to non card merchants may face consumer pass through risk

NPCI CEO Asbe says 10% of UPI value linked to non card merchants may face consumer pass through risk

NPCI CEO Dilip Asbe said the 10% figure he cited in the context of UPI charges refers to the value associated with merchants that do not accept credit cards, where there could be a risk of charges being passed on to customers. The majority of MDR, he said, will come from existing credit-card accepting merchants who already pay MDR.

Asbe said NPCI does not foresee any major impact on UPI volumes or value from the new charges

Majority of MDR will come from existing credit-card accepting merchants, he said

96% of UPI volume and 75% of UPI value will remain outside MDR, according to Asbe

NPCI is open to feedback and will look at data before considering changes to the pricing policy

Asbe said the ecosystem will need to reinvest in soundboxes, AI and other UPI infrastructure

NPCI will continue outreach to address what Asbe called misinformation and miscommunication around the policy

The apex retail payments body National Payments Council of India (NPCI) CEO Dilip Asbe said the the bulk of MDR ( Merchant Discount Rate ) under the new UPI charging framework is expected to come from merchants that already accept credit cards and pay credit-card charges, while the risk of passing the cost on to customers is limited to a smaller segment of transaction value. “Only the 10% of the value will be to the merchants that do not accept the credit card.


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