UPI MDR benefits will depend on merchant mix, transaction value

The impact of a possible Merchant Discount Rate (MDR) on UPI will vary across payment companies depending on their merchant base and transaction mix, rather than their overall UPI volumes, industry executives said.

“The introduction of MDR would bring a clearer commercial dimension to UPI, but the impact will vary across payment companies depending on their mix of merchant transactions. A platform’s overall UPI volume alone will not determine the benefit. The nature and value of the transactions it processes will also matter,” a senior Paytm executive said.