India's UPI MDR may yield ₹17,000-18,000cr from 0.4% fee
Business
India's new UPI merchant discount rate (MDR) framework could unlock a ₹17,000-18,000 crore revenue pool by adding a 0.4% fee on eligible transactions above ₹2,000.
This is higher than what most expected and means banks, payment processors, and apps like Paytm stand to benefit in a big way.
Paytm FY28 EBITDA could rise 30-50%
Paytm could see its FY28 EBITDA rise 30% to 50% in the next few years if these changes stick, while Pine Labs could also benefit, and TPAPs could receive 15-30% of MDR revenue.
Even with this new fee, UPI's low charges keep it attractive for users, helping digital payments grow even as some merchants try to dodge fees by switching up how they accept money.