UPI charges: Here is how interchange fees on wallet payments will work

The National Payments Corporation of India (NPCI) recently announced that from April 1, an interchange fee of up to 1.1 per cent on merchant Unified Payments Interface (UPI). The payments made using Prepaid Payment Instruments (PPIs) will attract interchange fees.
The platforms offering prepaid instruments like wallets and gift cards will have to pay fees on transactions above Rs 2,000. However, according to reports, the fee is 0.5 per cent for certain merchant categories.

The PPI issuer will have to pay 15 basis points as wallet-loading service charges to the account holder’s bank.

How will payments work?