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

India's move to introduce a merchant discount rate (MDR) fee on UPI transactions over 2,000 rupees will generate up to $1.1 billion in annual revenue by 2028, benefiting dominant players PhonePe and Google Pay, who control 80% of transaction value. This shift ends the previously free payment network era, enabling the leading firms to expand into rural areas while smaller rivals focus on niche higher-value transactions and credit products.

This Wire brief sits within Fusion42's coverage of Fintech, and 13 sources have reported it between 16 Sep 2026 and 29 Sep 2026.