Payment firms revive push for MDR on high-value UPI merchant transactions above ₹2,000
With UPI clocking 22.72 billion transactions worth ₹28.92 trillion in June and government incentives shrinking to ₹2,000 crore for FY27 against an ₹8,000-10,000 crore annual cost, PhonePe, Google Pay and others are lobbying for a 15bps merchant fee on payments above ₹2,000, targeting the top 4-6% of merchants.
Payment firms revive push for limited MDR on high-value UPI merchant transactions above ₹2,000, citing rising costs and shrinking government incentives, directly affecting merchant payment economics for Indian retailers and consumer-facing apps.