New UPI MDR framework may add fees on some merchant payments
In short
A new MDR framework for some UPI merchant payments may apply after Diwali. Eligible transactions above ₹2,000 will usually carry a 0.4% fee, with caps and exemptions.
This could give payment companies regular income instead of depending on incentives. It may matter for Paytm, MobiKwik and Pine Labs.
What the reporting says
A new MDR framework for some UPI merchant payments could give payment companies a recurring revenue stream, according to a market summary. Eligible transactions above ₹2,000 will generally attract a 0.4% fee, subject to caps and exemptions. The shift would reduce dependence on discretionary incentives and could affect firms such as Paytm, MobiKwik and Pine Labs.
Why it matters
A new MDR framework for some UPI merchant payments would apply a 0.4% fee to eligible transactions above ₹2,000, subject to caps and exemptions. The change could create recurring revenue for payment companies and reduce reliance on discretionary incentives. That makes the rule important for firms such as Paytm, MobiKwik and Pine Labs, which are named as potential beneficiaries.