SynopsisIndia's payments law may soon allow merchant discount rates on specific UPI transactions. This change could create significant revenue for payment platforms like Paytm and Pine Labs. The proposed amendment focuses on person-to-merchant payments exceeding two thousand rupees. Analysts predict a substantial revenue pool for the payments ecosystem by fiscal year twenty twenty-eight. This move aims to improve profitability for UPI companies facing processing costs.Bengaluru: A proposed amendment of India's payments law could create a significant revenue opportunity for payment platforms such as Paytm and Pine Labs, said brokerage Jefferies, as the government moves closer to allowing merchant discount rates (MDR) on certain UPI transactions.In a research note, Jefferies said amendments to the Payment and Settlement Systems Act would transfer the power to determine MDR on UPI transactions to the ReserveNow Playing
Jefferies sees Paytm, Pine Labs gaining from proposal to levy MDR on UPI transactions - The Economic Times
India's payments law may soon allow merchant discount rates on specific UPI transactions. This change could create significant revenue for payment platforms like Paytm and Pine Labs. The proposed amendment focuses on person-to-merchant payments exceeding two thousand rupees. Analysts predict a substantial revenue pool for the payments ecosystem by fiscal year twenty twenty-eight. This move aims to improve profitability for UPI companies facing processing costs.
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