Show Quick Read Key points generated by AI, verified by newsroom UPI remains free for consumers and small merchants. Here is what the current system means for consumers, merchants and the wider UPI ecosystem. Small merchants, including kirana stores, are not required to pay a Merchant Discount Rate (MDR) to accept UPI payments. Running a national payment infrastructure requires continuous investment in technology, fraud prevention, cybersecurity, compliance, customer support and innovation. Even if large merchants pay for payment acceptance, consumers would not have to pay to use UPI.