PhonePe CEO backs proposed UPI MDR on transactions above ₹2,000
PhonePe CEO Samir Nigam said a proposed 0.4% MDR on select UPI payments would affect a small share of merchant transactions while helping build a sustainable payments model. He argued the charge would remain below card-payment costs and cannot legally be passed on to consumers.
What happened
PhonePe CEO Sameer Nigam defended proposed MDR on UPI payments above ₹2,000, saying most merchant transactions would remain unaffected and charges stay below
Key facts
- UPI MDR proposed at 0.4% on select transactions
- Transactions above ₹2,000 are about 4% of volume and 66% of value
- 95–96% of UPI merchant transactions are below ₹2,000
- UPI originally had MDR of 0.65%
- Government made UPI MDR-free in 2020
- India has nearly 60 lakh (6 million) POS merchants accepting cards and wallets
- Card, RuPay and wallet interchange is about 1.5%–2.5%
- ₹5 MDR cap applies to insurance, petrol and bill payments
- Stock broking MDR is 0.02%
Why this matters
A sustainable fee pool for higher-value UPI transactions could increase the strategic value of partnerships with merchant acquirers, banks, and vertical SaaS platforms.