MobiKwik Welcomes New UPI MDR Framework to Scale Business

Regulatory Shift Opens Revenue Channels for Digital Platforms

The digital payments landscape in India is set for a structural evolution following a circular issued by the National Payments Corporation of India (NPCI). Operating under the authorization of the Reserve Bank of India pursuant to the Payment and Settlement Systems Act, 2007, the NPCI announced that a Merchant Discount Rate (MDR) of up to 0.4% will apply to Unified Payments Interface (UPI) Person-to-Merchant (P2M) transactions exceeding ₹2,000, effective October 15, 2026.

For fintech platforms like One MobiKwik Systems, this policy adjustment transforms previously non-chargeable payment transaction flows into revenue-generating channels. According to regulatory disclosures filed by the company with stock exchanges on September 16, 2026, the firm stands to capture these revenues through a dual approach: operating as a Third-Party Application Provider (TPAP) on the P2M share of its consumer UPI Gross Merchandise Value (GMV), and functioning as an acquirer directly on its merchant GMV.

Strategic Outlook and Market Implications

Management at One MobiKwik Systems regards the introduction of the MDR framework as a key enabler for its broader commercial strategy. By unlocking monetization on larger ticket-size transactions, the company aims to aggressively scale its merchant network and strengthen its positioning within India's real-time digital payments architecture.

Crucially, the regulatory framework explicitly prohibits levying any charges directly on retail customers, ensuring that consumer-facing UPI transactions remain entirely free of cost. Consequently, the adjustment impacts the merchant and institutional side of the ecosystem rather than end-users, aligning with national goals to maintain high accessibility for retail digital payments while establishing a sustainable revenue model for payment aggregators and banking partners.

Official Sources Section

According to official regulatory filings and disclosures provided by One MobiKwik Systems Limited submitted to the National Stock Exchange of India Limited and BSE Limited, and circular reference NPCI/UPI/OC-No.237/2026-27 issued by the National Payments Corporation of India (NPCI), the framework changes take legal effect on October 15, 2026.

Quote Section

"Organizers stated that the introduction of MDR on specific high-value merchant transactions provides a sustainable economic foundation for payment ecosystem participants while keeping everyday low-value transactions entirely free for consumers."

Why It Matters

The transition allows digital payment providers to diversify revenue generation beyond traditional value-added services. For investors and fintech analysts, the ability to monetize large-ticket P2M transactions offers a clearer path toward long-term operational profitability and margin expansion within the competitive digital transactions sector.

Key Facts at a Glance

• The National Payments Corporation of India introduced an MDR of up to 0.4% on UPI P2M transactions above ₹2,000.

• The new regulations are scheduled to become effective on October 15, 2026.

• One MobiKwik Systems plans to earn revenue as both a TPAP and an acquiring entity on merchant GMV.

• Retail customers remain completely exempt from charges, keeping everyday UPI payments free.

FAQ Section

What changes under the new NPCI circular for UPI transactions?

The NPCI has introduced a Merchant Discount Rate of up to 0.4% on UPI Person-to-Merchant (P2M) transactions that exceed ₹2,000, starting October 15, 2026.

Will everyday consumers be charged for using UPI?

No. The regulatory framework prohibits any direct charges on customers, ensuring that standard UPI usage remains free for everyday users.

How will One MobiKwik Systems generate revenue from this change?

MobiKwik expects to collect revenue in two distinct capacities: as a Third-Party Application Provider (TPAP) on consumer UPI GMV share, and as an acquirer on merchant GMV.

Where can stakeholders view the official company disclosure?

The complete regulatory disclosure is hosted on the official MobiKwik investor relations web portal at https://www.mobikwik.com/ir/stock-exchange-submission/FY2026-27.

Source: National Stock Exchange of India (NSE), BSE Limited, One MobiKwik Systems Limited Disclosures, National Payments Corporation of India (NPCI)