Impact of MDR’s return; KKR veterans to anchor new fund
India's potential reintroduction of merchant discount rates (MDR) on Unified Payments Interface (UPI) transactions could shift competition in the payments sector from user acquisition to monetizing merchant ecosystems. As platforms like PhonePe and Google Pay dominate UPI volumes, the focus may now turn to high-value transactions, enhancing payment economics. The MDR rate and revenue split are still undecided, but this change could lead to new strategies for apps targeting larger merchants and higher-value payments.