PhonePe and MobiKwik founders welcome UPI MDR charges

The co-founders of PhonePe and MobiKwik have welcomed the introduction of merchant discount rate (MDR) charges on Unified Payments Interface (UPI) transactions. They described the move as a very positive step that will support the sustainability of the payments ecosystem, including banks and payment companies that maintain the infrastructure.

The new MDR charges on UPI payments are expected to help make the continued growth of UPI and the wider payments industry more sustainable. This revenue will support banks and payment companies that maintain the underlying infrastructure, ensuring its stability and expansion.

Industry experts have expressed optimism about the impact of these charges, highlighting that they will provide necessary financial support to the ecosystem players. The introduction of MDR fees is seen as a way to balance rapid growth with long-term viability in digital payments.

While specific figures related to the MDR charges and their distribution were reported, these details come from a single source and have not been independently confirmed. The exact percentages and amounts involved in the MDR structure remain to be verified.

The payments industry continues to evolve, and this step is viewed by key stakeholders as an important development that will encourage innovation and investment in digital payment infrastructure.