Will UPI MDR be a new revenue engine for fintech firms?

The Indian government introduced a 0.4% MDR fee on UPI payments above 2000 rupees (capped at 300 rupees for payments of 75,000 rupees or more). Paytm shares rose 7%, and Jefferies and Goldman Sachs raised revenue and profit estimates for fintech companies.

• MDR 0.4% on UPI payments above 2000 rupees, maximum 300 rupees
• Jefferies estimates MDR market at 150–180 billion rupees in revenue
• Goldman Sachs sees Paytm EBITDA growth of 40–70% by FY28
• Emkay estimates Paytm MDR revenue at 11.2 billion rupees by FY28