India built rupay, an alternative to visa and mastercard which has 0 charge to merchants. It is expanding internationally and works in neighboring countries.

Aside from this, most local payments happen over UPI so they cost 0 as well.

Visa and mastercard usage is declining in India since a few years despite rapid increase in digital adoption. Government banned master card, diners, express, etc issuance for not complying with local data storage rules for over a year and it did not impact much.

I think the solution is to run payment infrastructure at public level like many countries have done in Asia.