50 new UPI applications may be launched soon (Photo: NPCI)
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. Businesses do not have any revenue options in the UPI model; Despite this, the UPI service may soon be launched on 50 new payment apps in the country.
‘National Payment Corporation of India’, the government company that runs the UPI payment service. (NPCI) A senior company official says that the commercial discount rate, i.e. MDR Despite the absence of UPI (the main source of revenue for payment services companies), 50 new third-party apps in the country want to adopt the UPI service for real-time payments.
NPCI’s big statement
Dilip Abse, MD and CEO of NPCI, believes that due to the lack of a revenue model in UPI, startups may have avoided adopting this system in the last few years, but in the last one year, startups have come to start UPI payment. service. The trend has increased between. We’ve seen at least 50 new third-party payment apps looking to enter the market. He said this in a conversation with Moneycontrol.
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He said that currently UPI transactions are completely free in the country. Fintech companies and banks bear the cost of processing it. It will also remain free in the future.
What is MDR?
The merchant discount rate or MDR is actually a fee that companies charge merchants who use their services to receive payments. This is the main source of income for credit card companies. There is no MDR feature in UPI payment, because it works on a peer-to-peer network. However, some payment companies have found an alternative to MDR for UPI payments by developing sound boxes, digital QR codes and POS systems.
