India, July 15 -- Will the MDR tide lift all UPI apps? That's the big question as we enter the critical phase of discussions and consultations around monetisation of UPI payments in India.

The absence of the merchant discount rate or MDR on UPI transactions has long been a pain point for startups. India's fintech sector has invested billions in creating the infrastructure needed for UPI payments penetration but has not seen much in the way of revenue upside.

The industry has argued that the inability to monetise UPI offerings has resulted in loss-making apps which are struggling to keep up with the maintenance and expansion costs associated with being a high-volume payments app. However, there are signs that the end of the free UPI era ...