Potential MDR on high-value UPI payments could reset fintech unit economics
A proposed 15–30 bps MDR on UPI merchant payments above Rs 2,000 could generate Rs 5,000–10,000 crore in platform revenue, helping payment firms fund technology, fraud controls and growth ahead of potential IPOs.
A potential MDR on high-value UPI merchant payments could improve fintech unit economics, fund fraud and technology investments, and strengthen IPO prospects for PhonePe, Razorpay, PayU and others. Jefferies estimates Rs 5,000-10,000 crore in potential platform revenue.