Merchant payments constitute around 62 percent of the overall UPI payments and have been growing rapidly. Fintech firms in a meeting with Reserve Bank of India (RBI) governor and other officials have discussed the possibility of charging merchants for Unified Payments Interface (UPI) transactions. This is the first time that fintechs raised the issue of a merchant discount rate (MDR) for merchants with the regulator directly. MDR is the commission that merchants pay to banks and other payment companies for facilitating a transaction. There is no MDR on UPI Payments, while debit cards have an average of 0.75 percent and credit cards around 1.75percent per transaction. The skew towards micropayments is only increasing as a large number of small merchants, roadside hawkers and other service providers started adopting UPI. The government waived off the MDR for all transactions in early 2020 amid the covid pandemic when the use of instant payments system zoomed. The regulator acknowledged that the zero MDR charges on U PI has paid off, given the exponential growth of the platform.