Big to get bigger: India's UPI fee shift to entrench dominant incumbents

India's introduction of a 0.4% merchant fee on UPI transactions above 2,000 rupees will generate up to $1.1 billion annually for payment apps by 2028, mainly benefiting dominant players PhonePe and Google Pay. This fee change could enable these incumbents to expand into rural areas, while smaller rivals pivot to higher-value transactions and credit offerings.

This Wire brief sits within Fusion42's coverage of Fintech, and 37 sources have reported it between 20 Jul 2026 and 3 Oct 2026.