MobiKwik flags 0.4% UPI MDR on select merchant payments above ₹2,000
MobiKwik co-founder Upasana Taku discusses a revised UPI MDR framework that would apply a 0.4% fee to select merchant transactions above ₹2,000 from October 15, 2026, reshaping merchant payment costs and fintech monetisation.
What happened
Mobikwik · MobiKwik co-founder Upasana Taku discusses the revised UPI MDR framework, under which select merchant transactions above ₹2,000 will incur a 0.4%
Key facts
- 0.4% MDR
- ₹2,000 transaction threshold
- October 15, 2026
Why this matters
Payments platforms may pursue merchant-acquiring, routing and value-added-service partnerships to offset MDR sensitivity and capture incremental revenue from higher-value UPI transactions.
What to watch
- Formal NPCI, RBI or government notification defining the revised MDR framework and October 15, 2026 effective date.
- Exact scope of 'select merchant payments,' including MCC exclusions, online versus offline treatment and whether P2M QR transactions qualify.
- Confirmation of who bears the fee: merchant, acquiring bank, PSP, issuer or customer.
- Merchant-association response, legal challenges and large retailer announcements on surcharging or UPI acceptance limits.
- Acquirer and fintech pricing circulars showing pass-through rates, settlement changes and incentive withdrawals.
- Evidence of ticket-size splitting, migration to cards/cash/NEFT, or lower UPI share in high-value retail categories.
- Model UPI acceptance cost by average order value, transaction mix and merchant category, with separate exposure for bills above ₹2,000.
- Review checkout routing, QR/acquirer contracts and surcharge policies; identify whether merchant agreements permit differential pricing or payment-method steering.
- Prepare high-ticket payment alternatives such as cards, bank transfer, EMI and pay-later, while avoiding customer friction at checkout.
- Seek clarification from PSPs, acquirers and industry bodies on eligible merchant categories, fee bearer, GST treatment, settlement mechanics and refund treatment.
- Use any new MDR burden in negotiations for lower gateway fees, faster settlement, fraud tools or bundled merchant services.