Paytm sees added merchant revenue as UPI MDR begins on payments above ₹2,000
Paytm said NPCI’s new merchant discount rate of up to 0.4% on eligible UPI person-to-merchant payments above ₹2,000 could add to merchant-business revenue. Customer UPI payments remain free, while transactions below ₹2,000 stay free for merchants. The change takes effect October 15, 2026.
What happened
Paytm said NPCI’s new MDR of up to 0.4% on eligible UPI merchant payments above ₹2,000 will create additional merchant-business revenue. Customers will continue
Key facts
- MDR of up to 0.4%
- UPI P2M transactions above ₹2,000
- P2M transactions below ₹2,000 remain free for merchants
- Effective October 15, 2026
- NPCI circular issued September 15, 2026
What changed
Paytm said NPCI’s new MDR of up to 0.4% on eligible UPI merchant payments above ₹2,000 will create additional merchant-business revenue. Customers will continue to make UPI payments free of charge.
Why this matters
Paytm gains a potential incremental merchant-revenue stream from up to 0.4% MDR on eligible UPI payments above ₹2,000, while consumer usage remains free.
What to watch
- NPCI implementation circular defining eligible transaction types, merchant categories, exemptions, and the final MDR ceiling.
- Merchant acceptance rates and any surcharge, discount, or payment-steering behavior after October 15, 2026.
- Paytm's reported payment-processing margin, merchant subscription revenue, and high-ticket UPI transaction mix.
- Competitive pricing actions from PhonePe, Google Pay, banks, payment aggregators, and card networks.
- Regulatory or political reaction if consumers perceive indirect price increases on purchases above ₹2,000.