Here's how UPI merchants will benefit from PPI wallets interoperability, set to go live from April 1
Experts said that the NPCI circular announcing the full interoperability of KYC wallets across all UPI merchants is a significant step towards the growth of digital payments in India.
NCPI has permitted prepaid payment instruments (PPI) wallets to be part of an interoperable UPI ecosystem. Further, it fixed an interchange fee of 1.1% for using PPIs for transactions above ₹2,000 using UPI. These new guidelines are set to become effective from April 1st. The new interoperability of KYC wallets is not just a good news for fintech companies, but is also a significant development for UPI merchants.