India's free UPI payment ecosystem could soon witness its biggest policy shift since launch. The government has proposed amendments to the Payment and Settlement Systems Act that create a legal framework for introducing Merchant Discount Rate (MDR) on selected digital payment modes in the future.

While no immediate charges have been announced, reports suggest the government is considering a 0.25% to 0.4% merchant fee on UPI transactions above ₹2,000 made to businesses. Person-to-person transfers are expected to remain free, while larger merchants could bear the charges based on their annual turnover.

UPI Payments May No Longer Be Free? Government Eyes Merchant Charges

The National Payments Corporation of India (NPCI) on Tuesday announced the signing of a Memorandum of Understanding (MoU) with NTT DATA Japan, a core subsidiary of the NTT DATA Group and a provider of IT and business services headquartered in Tokyo, Japan. In the future, the deal may enable the use of UPI in the Asian economic powerhouse. Indian tourists may be allowed to use the technology to make payments in the country.<h2>All you need to know about the agreement</h2>A statement said that the MoU sets up the foundation required for a strategic alliance and marks a step towards the use of India's UPI in the Japanese market by Indian tourists. NTT Data Japan operated the country's biggest card payment processing networks, which connect a wide range of acquirers, issuers, merchants, and ATM operators across the country, providing the backbone for Japan's payment infrastructure.&nbsp;India's NIPL and NTT DATA Japan will facilitate UPI acceptance across NTT DATA-acquired merchant locations throughout Japan.&nbsp;The integration of UPI will enable businesspeople in Japan to ensure faster checkouts, enhance customer satisfaction, and drive business growth.&nbsp;Japan is a popular tourist destination in India. In the first eight months of 2025, 208,000 visitors travelled to Japan, a 36 per cent increase compared to the same period in 2024.&nbsp;After the implementation of the deal, Indian tourists will be able to make UPI-based payments to merchants in Japan by scanning QR codes using their familiar UPI applications.&nbsp;"This partnership is an important step toward improving the digital payment experience for Indian travellers and simplifying cross-border payments. It also reflects our ambition to take UPI to more international markets and establish it as one of the most trusted digital payment systems globally," Ritesh Shukla, MD &amp; CEO of NPCI International, said.&nbsp;Masanori Kurihara, Head of Payments in Japan, said that UPI would help Japanese merchants capture new opportunities.

The National Payments Corporation of India (NPCI) on Tuesday announced the signing of a Memorandum of Understanding (MoU) with NTT DATA Japan, a core subsidiary of the NTT DATA Group and a provider of IT and business services headquartered in Tokyo, Japan.

The National Payments Corporation of India (NPCI) on Tuesday announced the signing of a Memorandum of Understanding (MoU) with NTT DATA Japan, a core subsidiary of the NTT DATA Group and a provider of IT and business services headquartered in Tokyo, Japan. In the future, the deal may enable the use of UPI in the Asian economic powerhouse. Indian tourists may be allowed to use the technology to make payments in the country. All you need to know about the agreement A statement said that the MoU sets up the foundation required for a strategic alliance and marks a step towards the use of India's UPI in the Japanese market by Indian tourists. NTT Data Japan operated the country's biggest card payment processing networks, which connect a wide range of acquirers, issuers, merchants, and ATM operators across the country, providing the backbone for Japan's payment infrastructure. India's NIPL and NTT DATA Japan will facilitate UPI acceptance across NTT DATA-acquired merchant locations throughout Japan. The integration of UPI will enable businesspeople in Japan to ensure faster checkouts, enhance customer satisfaction, and drive business growth. Japan is a popular tourist destination in India. In the first eight months of 2025, 208,000 visitors travelled to Japan, a 36 per cent increase compared to the same period in 2024. After the implementation of the deal, Indian tourists will be able to make UPI-based payments to merchants in Japan by scanning QR codes using their familiar UPI applications. "This partnership is an important step toward improving the digital payment experience for Indian travellers and simplifying cross-border payments. It also reflects our ambition to take UPI to more international markets and establish it as one of the most trusted digital payment systems globally," Ritesh Shukla, MD & CEO of NPCI International, said. Masanori Kurihara, Head of Payments in Japan, said that UPI would help Japanese merchants capture new opportunities.

UPI in Japan: India's NIPL and NTT DATA Japan will facilitate UPI acceptance across NTT DATA-acquired merchant locations throughout Japan.

UPI for Indian tourists in Japan? Memorandum of Understanding signed

upi-news

Upi News, News on Upi News, stories on Upi News, articles on Upi News, Upi News stories at Wion, Upi News news, Upi News latest news

upi news

UPI Payments May No Longer Be Free? Government Eyes Merchant Charges

UPI for Indian tourists in Japan? Memorandum of Understanding signed