UPI Payment 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 payment.
Companies do not have any earning option in UPI model, despite this, UPI service can be started on 50 new payment apps in the country soon.
A senior official of National Payment Corporation of India (NPCI), the government company that manages the UPI payment service, says that despite the absence of Merchant Discount Rate ( MDR) (the main source of income for companies providing payment services), 50 new third party apps in the country want to adopt UPI service for real time payment.
Big statement of NPCI
Dilip Abse, MD and CEO of NPCI, agrees that due to the lack of an income model in UPI, new companies may have been avoiding adopting this system in the last few years, but in the last one year, the trend of new companies to start UPI payment service has increased. We have seen that at least 50 new third party payment apps now want to enter the market. He said this in a conversation with Moneycontrol.
He said that right now UPI transactions are completely free in the country. The cost of its processing is borne by fintech companies and banks. It will remain free in future as well.
What is MDR?
Merchant Discount Rate or MDR is actually a fee that companies charge from the merchant who uses its service to receive payment. This is the main source of income for credit card companies. UPI payment does not have the facility of MDR because it works on peer 2 peer network. However, some payment companies have found an alternative to MDR for UPI payment by developing soundbox, digital QR code and POS system.
Related Articles:-
Tata Group will provide 5 lakh jobs, most jobs will be provided in these sectors
New ITR e-filing portal 3.0 launching soon: All you need to know
MSP Hike: Cabinet approves MSP for Rabi crops for marketing season, see new minimum price
