PhonePe and MobiKwik Co-Founders Welcome MDR Charges on UPI
· Business · Hindustan Times, Moneycontrol
Industry leaders have welcomed the introduction of Merchant Discount Rate charges on Unified Payments Interface transactions as a positive step for the digital payments ecosystem. MobiKwik co-founder Upasana Taku stated that the measure will help sustain infrastructure costs facing banks and payment providers after a decade of massive growth. The 0.4% charge applies specifically to large merchant transactions exceeding ₹2,000, while person-to-person transfers and small merchants with monthly sales around ₹1 lakh remain fully exempted. PhonePe founder and CEO Sameer Nigam also supported the move, noting that the generated revenue will help firms recover their operational costs.
Why it matters
Large merchants handling high transaction volumes will face a 0.4% fee, providing critical revenue for banks and payment gateways maintaining India's digital payment infrastructure.
Read the original report — Hindustan Times
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