The introduction of a new merchant discount rate (MDR) for UPI transactions is prompting direct-to-consumer (D2C) brands to reassess their costs, particularly in low-margin sectors like consumer electronics and fashion.
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Key takeaway
UPI merchant discount rate (MDR) now applies to D2C brands, raising payment processing costs.
- Step 1 · The triggerUPI transactions now attract a merchant discount rate (MDR), raising payment processing costs for D2C brands.
- Step 2 · Knock-onWithheld This step of the chain is withheld. The reason is set out in the notice above — a deliberate omission, not missing data.
- Step 3 · Reaches youSMEs face tighter working capital and may need to adjust pricing or renegotiate payment terms before the festive sales period.
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: Economic Times Top Stories
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