Will UPI MDR be a new revenue engine for fintech firms?

The Indian government introduced a merchant discount rate (MDR) of 0.4% on UPI transactions above Rs 2000, capped at Rs 300 for transactions over Rs 75,000, aiming to generate new revenue streams for fintech companies. This move is expected to boost revenues and valuations for payment firms like Paytm and PhonePe, though the long-term impact remains uncertain as consumer payment behaviour and UPI usage could be affected.

This Wire brief sits within Fusion42's coverage of Fintech, and 27 sources have reported it between 15 Sep 2026 and 5 Oct 2026.