Zero UPI interchange, PSP fees may hurt PhonePe, Google Pay

NEW DELHI : Through a circular on Friday, the National Payments Corporation of India (NPCI) said that it has agreed to revise the UPI interchange and payment service provider fees to “zero” for all domestic UPI merchant (P2M) transactions with retrospective effect from January 1, 2020.

The abolition of the fees has been made for an interim period until April 30, 2020, according to the circular.

The same is not applicable to services like mandates, EMI, overdraft account and business-to-business (B2B) collections and payments.

The move to do away with these transactions fees comes after the abolishment of the Merchant Discount Rate (MDR).