Wire · operational-macro
UPI growth pushes banks to look beyond payments for revenue: McKinsey
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Fusion42 · 18 August 2026 · Fusion42 review
The rapid growth of India's Unified Payments Interface (UPI) is pressuring traditional payment revenue streams, driving banks and fintech companies to pursue lending, merchant solutions, and other value-added services for diversified income. This shift is supported by government subsidies, zero fees for merchants, and regulatory changes allowing new revenue models such as Merchant Discount Rates (MDR) on some transactions.
This Wire brief sits within Fusion42's coverage of Fintech, and 2 sources have reported it.
◆ ◆ The Wire takeaway
Banks and fintechs in India must pivot revenue models away from transaction fees towards lending and value-added services because payments by UPI alone won’t sustain income. You need to start building those premium financial products and merchant services now before the traditional fee routes shrink further.
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2 sources · 18 Aug 2026
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