NPCI introduces 0.4% MDR on UPI P2M above ₹2,000 from Oct 15
- NPCI introduces up to 0.4% MDR on UPI P2M transactions above ₹2,000
- New fee structure effective from October 15, 2026
- One Mobikwik expects revenue as TPAP and acquirer on eligible GMV
- UPI payments remain free for end-users per circular guidelines
- Company views development as enabler for scaling merchant business
*this image is generated using AI for illustrative purposes only.
The National Payments Corporation of India (NPCI) will introduce a merchant discount rate on Unified Payments Interface (UPI) person-to-merchant transactions exceeding ₹2,000. The fee structure becomes effective on October 15, 2026.
One Mobikwik Systems disclosed the regulatory change in a filing with stock exchanges on September 16, 2026. The move marks a shift in the economics of digital payments, converting previously free transactions into revenue-generating events for payment service providers.
Regulatory Details
The NPCI circular, numbered NPCI/UPI/OC-No.237/2026-27 and dated September 15, 2026, mandates a merchant discount rate of up to 0.4% on UPI P2M transactions above the ₹2,000 threshold. This regulation applies to payments processed through the UPI network.
Crucially, the circular prohibits charging customers for these transactions. UPI payments remain free for end-users, meaning the cost burden falls entirely on merchants or is absorbed by the payment ecosystem intermediaries.
Revenue Implications
One Mobikwik expects to monetize this regulatory shift through two primary channels within its payments business:
- As a Third-Party Application Provider (TPAP), earning on the P2M share of its consumer UPI Gross Merchandise Value (GMV).
- As an acquirer, generating revenue on its merchant GMV.
Transactions that were previously non-chargeable will now contribute to the company’s top line. The firm noted that it would update stock exchanges on the financial impact once the circular takes effect.
Strategic Outlook
The company views the introduction of the MDR as a strong enabler for its strategy to deepen its presence in the UPI ecosystem. Management indicated plans to scale its merchant business leveraging this new revenue model.
This disclosure was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
Historical Stock Returns for One Mobikwik Systems
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -1.57% | +1.84% | -2.71% | +6.62% | -37.47% | -62.55% |
How might the introduction of the 0.4% MDR influence merchant adoption rates of UPI for high-value transactions compared to credit or debit cards?
What competitive strategies are other major TPAPs and payment aggregators likely to deploy to capture market share in this newly monetized segment?
Could the cost burden on merchants lead to increased pricing for consumers, potentially dampening overall digital payment volume growth?
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