UPI MDR debate revives as Surjewala urges annual fees on foreign payment platforms
Ahead of MDR on select high-value UPI merchant transactions from October 15, Congress leader Randeep Surjewala proposed $50 million-$100 million annual participation fees for dominant foreign platforms, citing PhonePe and Google Pay’s scale and access to Indian transaction data.
What happened
UPI will introduce MDR on select high-value merchant transactions from October 15. Congress leader Randeep Surjewala proposed $50-100 million annual fees for
Key facts
- October 15
- $50 million-$100 million annual participation fee
- around 80% of UPI transactions
- Rs 320 lakh crore out of Rs 400 lakh crore UPI business
- Rs 5,040 crore UPI transaction tax
- PhonePe processes 45% of UPI transactions
- PhonePe valuation below $10 billion
Why this matters
Payments partnerships and acquisition targets will face heightened diligence on ownership, data access, regulatory exposure, and the ability to absorb new participation or transaction fees.