UPI is operated by the National Payments Corporation of India and allows users to transfer money directly between bank accounts. Legislation Could End Zero-MDR PolicyIndia removed merchant discount rates from UPI payments in January 2020 to increase adoption. The proposed amendment to the Payment and Settlement Systems Act would give authorities the power to specify which UPI transactions may carry merchant fees. PhonePe and Google Pay Handle Most UPI PaymentsWalmart-owned PhonePe and Alphabet’s Google Pay process nearly 80% of UPI transaction volumes. The financial benefit for either company would depend on how merchant fees are divided between banks, payment apps and other network participants.