UPI MDR Fee Explained: How Banks, Fintechs & Paytm Could Benefit From New Payment Revenue

 UPI payments are facing a major shift with the introduction of a 0.4% MDR fee at the merchant level. What does this mean for banks, fintech companies, merchants and the payment ecosystem? Pankaj Pandey, Head of Research, ICICI Direct, explains how the new fee could create a recurring revenue stream for banks, potentially add to their profits and benefit payment aggregators such as Paytm, MobiKwik and Pine Labs. The discussion also explores the possible impact on credit card and debit card usage, changing consumer behaviour and the future of digital payments in India.