News18 (English) ·
Economy, business and finance
‘Why Should UPI Be Free?’: PhonePe CEO Backs 0.4% MDR, Says Industry Needs Revenue Model
Nigam claimed that the industry invested nearly $5 billion in equity over the past five to six years, while fintech firms and banks continued to report losses on UPI businesses.
PhonePe Founder and CEO Sameer Nigam has backed the government’s move to impose a 0.4% Merchant Discount Rate (MDR) on certain UPI merchant transactions above Rs 2,000, arguing that the digital payments ecosystem needs a sustainable revenue model to fund its continued expansion.
Speaking to CNN-News18, Nigam questioned why UPI should remain free for merchants when other payment instruments attract charges and the industry continues to incur significant costs related to cybersecurity, fraud prevention, risk management, KYC and compliance.