D2C brands and discount brokerage firms are expressing concerns over the proposed merchant discount rate (MDR) on UPI payments, warning that it could pressure their margins and alter transaction cost strategies during the festive season.
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Key takeaway
Proposed MDR on UPI payments will directly raise transaction costs for D2C brands and discount brokerages.
- Step 1 · The triggerthe proposed MDR introduces a per-transaction fee on UPI payments, raising acceptance costs for merchants including D2C brands and brokerages
- Step 2 · Knock-onhigher UPI acceptance costs compress net margins for D2C brands and discount brokerages, especially during festive season volume spikes
- Step 3 · Reaches youSMEs relying on UPI must adjust pricing or payment strategies to offset the new cost, or risk margin erosion
The trigger is reported by the source below. The steps that follow are Branch²’s traced reasoning — how the shock could reach a business like yours, not a prediction.
Source: The Hindu BusinessLine
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