Wire · operational-macro
New UPI Fees May Unlock $1.1 Billion Revenue Pool For Payment Apps; GPay, PhonePe To Lead
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Fusion42 · 23 September 2026 · Fusion42 review
India will introduce a 0.4% merchant discount rate fee on UPI transactions above Rs 2,000 starting October 15, expected to generate up to $1.1 billion annually by 2028, with PhonePe and Google Pay capturing about $900 million.
This Wire brief sits within Fusion42's coverage of Fintech.
◆ ◆ The Wire takeaway
The introduction of UPI merchant fees shifts economics in your favour if you build payment apps targeting higher-value transactions or rural markets where existing incentives were weak. Expect PhonePe and Google Pay to widen their lead as stronger revenue lets them invest more in expansion and tech.
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1 source · 22 Sep 2026
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