MobiKwik CFO pushes for graded MDR on UPI payments from large merchants

CFO Upasana Taku argues zero-MDR UPI is unsustainable as government incentives shrink to ₹2,000 crore for FY27, urging a graded merchant fee for large players like Eternal and Policybazaar. MobiKwik posted ₹288.7 crore Q4 FY26 revenue and ₹4.4 crore net profit.

— Source publishedWed, 8 Jul, 2026, 15:29 IST·First seen Wed, 8 Jul, 2026, 15:36 IST·Source Mint

What happened

Mobikwik · MobiKwik CFO Upasana Taku urges reintroducing graded MDR on UPI transactions for large merchants like Eternal and Policybazaar, arguing zero-MDR is

Key facts

  • 0.90% debit card MDR
  • 0.30% UPI P2M MDR
  • ₹50 lakh-₹1 crore merchant threshold
  • ₹2,000 crore FY27 incentive outlay
  • ₹202.70 share price
  • revenue ₹288.7 crore Q4 FY26
  • net profit ₹4.4 crore

Why this matters

The regulatory momentum toward reinstating UPI MDR for large merchants could re-rate payment fintech monetization models, making distressed or thinly-profitable processors like MobiKwik (₹4.4 crore Q4 net profit) more strategically valuable.

What to watch

  • FY27 Union Budget UPI incentive allocation confirmation
  • RBI/NPCI statements on MDR policy or tiering
  • Payments Council of India formal proposal submission
  • Quarterly PSP take-rate and payments-margin disclosures
  • Credit-on-UPI transaction volume and interchange trends
  • MobiKwik and peers lobby NPCI/Payments Council of India for graded MDR framework
  • Large merchants (Eternal, Policybazaar) push back publicly citing cost pass-through to consumers
  • Fintechs accelerate credit-on-UPI and lending cross-sell to diversify away from payments float
  • Industry bodies commission cost-of-acceptance studies to justify fee structures