Wire · operational-macro
PhonePe CEO says 0.4% MDR on high-value UPI transactions aids growth
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Fusion42 · 16 September 2026 · Fusion42 review
The Indian government has introduced a 0.4% Merchant Discount Rate (MDR) on UPI transactions above Rs 2,000 to generate revenue for reinvestment in the UPI ecosystem, ensuring its long-term growth and sustainability while keeping smaller transactions free. This change allows payment providers to recover operational costs and expand digital payment access to smaller towns and more merchants.
This Wire brief sits within Fusion42's coverage of Fintech, and 3 sources have reported it.
◆ ◆ The Wire takeaway
You now have a chance to build on UPI's growth with new revenue from high-value transactions enabling reinvestment. This shift marks a new revenue lane for payment apps after six years without fees, so prepare to scale marketing and innovation with fresh funds.
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3 sources · 16 Sep 2026
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