15/09/2026
UPI was free. But was it really cost-free?
For years, ₹0 MDR made UPI synonymous with frictionless digital payments.
But “free to the user” doesn’t mean “free to the ecosystem.”
Banks, PSPs, payment infrastructure and merchants still carry the cost.
Now, as the conversation around the slow return of MDR grows, the real question is:
💡 Who should ultimately pay for India’s digital payment infrastructure?
Free payments helped UPI scale.
Sustainable economics may determine how it evolves.
Zero MDR was great for adoption.
But can zero MDR sustain the ecosystem forever?
https://paaramarsh.in/blog/upis-free-ride-actually-costs