Mobikwik: NPCI Introduces MDR on UPI P2M Transactions > ₹2000
One Mobikwik Systems Ltd announced that the National Payments Corporation of India (NPCI) has introduced a Merchant Discount Rate (MDR) of up to 0.4% on UPI Person-to-Merchant (P2M) transactions exceeding ₹2,000. This change, effective from October 15, 2026, will allow Mobikwik to generate revenue from previously non-chargeable payment transactions. The company expects to earn revenue both as a Third-Party Application Provider (TPAP) on its consumer UPI GMV and as an acquirer on its merchant GMV. Importantly, the circular prohibits charging customers, ensuring UPI payments remain free for users. Mobikwik views this as a positive development that will enable deeper penetration in UPI and scale its merchant business.
Key Highlights
- NPCI introduces MDR up to 0.4% on UPI P2M transactions over ₹2000.
- Effective October 15, 2026, this will generate new revenue streams for Mobikwik.
- Revenue will be earned as a TPAP and as an acquirer on merchant GMV.
- UPI payments will remain free for end-users.
- Development expected to deepen UPI presence and scale merchant business.
Price Impact
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