UPI MDR on merchant payments above ₹2,000 to open new revenue stream for Paytm, Pine Labs
NPCI’s MDR framework for UPI merchant payments above ₹2,000, effective October 15, is expected to create recurring payment-processing revenue. Brokerages estimate FY28E UPI MDR revenue of ₹1,120 crore for Paytm and ₹155 crore for Pine Labs.
What happened
Paytm (One 97 Communications) · NPCI’s MDR on UPI merchant payments above Rs 2,000 is expected to create recurring revenue for Paytm and Pine Labs. Brokerages
Key facts
- UPI P2M transactions above Rs 2,000: MDR up to 0.4%
- Policy effective October 15
- FY28E UPI MDR revenue: Paytm Rs 1,120 crore; Pine Labs Rs 155 crore
What changed
NPCI’s MDR on UPI merchant payments above Rs 2,000 is expected to create recurring revenue for Paytm and Pine Labs. Brokerages raised valuation assumptions, estimating FY28E UPI MDR revenue of Rs 1,120 crore for Paytm and Rs 155 crore for Pine Labs.
Why this matters
Prepare merchant pricing, routing and retention plans for UPI P2M transactions above ₹2,000 as up to 0.4% MDR creates a new recurring revenue pool from October 15.