Tech service providers set to gain as MDR returns to UPI

Banks and payment apps may split the merchant discount rate (MDR) set to return on UPI, but the first to benefit could be the companies that build their payment systems.

Technology service providers (TSPs), which build UPI switches, card platforms and payment apps, are already seeing an influx of enquiries from banks and non-banking financial companies (NBFCs) looking to launch their own third-party application provider (TPAP) apps, the consumer-facing UPI apps such as PhonePe and Google Pay, according to multiple industry executives FE spoke to. The layer includes Mindgate Solutions, NPST, Sarvatra Technologies, Juspay, M2P Fintech, Zeta, iServeU and Finarkein Analytics.