MobiKwik CFO pushes for MDR on large-merchant UPI as zero-fee model strains payment firms
Upasana Taku argues zero-MDR UPI is unsustainable for banks and fintechs as government incentives fall (₹2,196cr FY26, ₹2,000cr FY27), urging fees up to 0.30% on P2M for big merchants like Eternal and Policybazaar. MobiKwik posted Q4 FY26 revenue of ₹288.7cr (+7.8%) and net profit of ₹4.4cr.
What happened
Mobikwik · MobiKwik CFO Upasana Taku urges reintroducing MDR on UPI for large merchants like Eternal and Policybazaar, calling zero-MDR unsustainable for banks
Key facts
- MDR up to 0.30% UPI P2M
- MDR up to 0.90% debit card
- ₹50 lakh-₹1 crore monthly threshold
- shares ₹202.70, down 1.2%
- UPI/RuPay incentive ₹2,000 crore FY27
- ₹2,196 crore FY26
- revenue ₹288.7 crore Q4 FY26 up 7.8%
- net profit ₹4.4 crore
- wallet ~20% market share
- lending 25-30% of revenue
Why this matters
A regulatory shift toward reintroducing MDR on large merchants like Eternal and Policybazaar would reshape payment-fintech unit economics and could catalyze consolidation or partnership plays across the digital-payments landscape.
What to watch
- FY27 Union Budget UPI incentive allocation vs actual firm losses
- NPCI/MeitY official statement on MDR policy review
- Fintech quarterly margins deteriorating as incentives shrink
- Any pilot or consultation paper proposing merchant-size thresholds
- Consumer/merchant backlash intensity in political discourse
- MobiKwik and peer fintechs (PhonePe, Paytm) coordinate industry-body (PCI) representations to MeitY/NPCI for tiered MDR
- Large merchants like Eternal, Policybazaar lobby against fees, warning of pass-through to consumers
- Payment firms diversify into UPI-linked credit, lending, and subscription monetization to reduce zero-MDR dependence
- Banks quietly support MDR return to offset UPI processing losses