Proposed UPI merchant fee could unlock ₹13,500–16,000 crore for payment apps and banks

A proposed 25–30 bps merchant discount rate on UPI payments could create a new annual revenue pool for PhonePe, Google Pay, Paytm and banks. The plan remains subject to government notification, merchant thresholds and NPCI’s revenue-sharing formula.

— Filed Thu, 6 Aug, 2026, 10:27 IST · Source Outlook Business · Updated

A proposed 25-30 bps UPI merchant fee could create ₹13,500-16,000 crore in annual payments revenue, benefiting PhonePe, Google Pay, Paytm and banks. Applicability thresholds and NPCI’s revenue-devolution formula remain pending government notification.