What are the charges for UPI for business?

UPI payments for businesses are often free for most direct bank-to-bank transactions, as per current NPCI guidelines. However, if a customer pays a merchant using a Prepaid Payment Instrument (PPI) like a digital wallet for a transaction above ₹2,000, an interchange fee applies, which the merchant must pay. This fee typically ranges from 0.5% to 1.1%, varying by sector, making UPI generally cheaper than traditional methods. Businesses should verify specific charges with their Payment Service Provider.