Proposed UPI MDR Law Could Lift Paytm, Pine Labs Revenue as India Shifts Fee Powers
Updated
Updated · The Economic Times · Aug 4
Proposed UPI MDR Law Could Lift Paytm, Pine Labs Revenue as India Shifts Fee Powers
3 articles · Updated · The Economic Times · Aug 4
Summary
Jefferies said a proposed amendment to India’s payments law could open a significant new revenue stream for Paytm and Pine Labs by allowing merchant discount rates on some UPI transactions.
The change would amend the Payment and Settlement Systems Act and shift authority to set MDR on UPI transactions to the Reserve Bank of India, according to the brokerage note.
That would mark a policy turn for UPI, India’s dominant real-time payments network, where merchant fees have largely been absent and monetization for payment platforms has been limited.
For listed and private payment firms, the proposal matters because even selective MDR on UPI payments could reshape earnings potential across India’s digital payments market.