UPI MDR could create Rs 27,000 crore revenue pool by FY28: Bernstein
The introduction of a 40-basis-point MDR on eligible UPI merchant transactions could create an industry revenue pool of about Rs 27,000 crore by FY28, brokerage estimates suggest. Of the estimated pool, issuing banks could receive about Rs 10,800 crore, while consumer-facing UPI apps could earn around Rs 5,400 crore and their partner payer PSP banks about Rs 2,700 crore, Bernstein estimates in a report.
Merchant-side payment apps could capture another Rs 5,400-6,800 crore, while beneficiary or acquiring banks could receive roughly Rs 1,400-2,700 crore, according to Bernstein’s illustrative distribution.
