PhonePe and MobiKwik founders back 0.4% MDR on UPI merchant payments above ₹2,000
The founders say a proposed 0.4% merchant discount rate on UPI transactions above ₹2,000 could help fund payment infrastructure and ecosystem expansion, while small-value and person-to-person transfers remain free.
What happened
PhonePe and MobiKwik founders support a 0.4% MDR on merchant UPI payments above ₹2,000, saying the revenue can offset infrastructure costs and fund ecosystem
Key facts
- 0.4% MDR on merchant UPI transactions exceeding ₹2,000
- 0.02% charge for mutual funds, securities and stockbrokers
- UPI transaction value grew from ₹0.07 lakh crore in FY2017 to around ₹314 lakh crore in FY2026
- More than 4,000-fold UPI transaction-value growth
- UPI accepted in 11 countries
- UPI operates across more than 200 countries globally
Why this matters
The emerging pro-MDR consensus may make payments infrastructure, merchant-acquiring and value-added UPI assets more strategically attractive for partnerships or acquisitions.