UPI MDR Explained: PhonePe CEO Sameer Nigam on What the New Policy Means for Digital Payments
Sep 16, 2026
Karnataka: PhonePe Founder & CEO Sameer Nigam explains the new UPI Merchant Discount Rate (MDR) policy, saying the 0.4% MDR on large-value merchant transactions will help make the digital payments ecosystem more sustainable. He says around 96% of UPI transactions will remain free, while the additional revenue can support innovation, merchant digitization and expansion into smaller towns and cities.