https://www.desidime.com/discussions/phonepe-reaches-usd-1-trillion-annualised-payment-value-run-rate-gets-payment-aggregator-licence?page=1#post_9147606
Do they earn on these transactions?
PhonePe Reaches USD 1 Trillion Annualised Payment Value Run Rate; Gets Payment Aggregator Licence
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https://zeenews.india.com/companies/phonepe-rea...
New Delhi: Digital payments platform PhonePe has achieved an annualised total payment value run rate of USD 1 trillion, or Rs 84 lakh crore, mainly on account of its lead in UPI transactions, the company said on Saturday.
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https://www.desidime.com/discussions/phonepe-reaches-usd-1-trillion-annualised-payment-value-run-rate-gets-payment-aggregator-licence?page=1#post_9147901
kartikxxx wrote:Yes, 0.02% MDR on UPI Merchant transactions.Do they earn on these transactions?
https://www.desidime.com/discussions/phonepe-reaches-usd-1-trillion-annualised-payment-value-run-rate-gets-payment-aggregator-licence?page=1#post_9147907
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So they earned 1680 cr?
abhishek012 wrote:Who pays it? If x send 100 to y, and y receive 100 then who pays mdr?
Yes, 0.02% MDR on UPI Merchant transactions.
So they earned 1680 cr?
https://www.desidime.com/discussions/phonepe-reaches-usd-1-trillion-annualised-payment-value-run-rate-gets-payment-aggregator-licence?page=1#post_9148036
https://www.desidime.com/discussions/phonepe-reaches-usd-1-trillion-annualised-payment-value-run-rate-gets-payment-aggregator-licence?page=1#post_9148122
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kartikxxx wrote:
Who pays it? If x send 100 to y, and y receive 100 then who pays mdr?
So they earned 1680 cr?
Merchants were paying this MDR fees between the year 2016 to 2019 -
UPI merchant transaction under Rs100 - No MDR
UPI merchant transaction between 101 to 1000 - 0.1% MDR
UPI merchant transaction above Rs1000 - 0.25% MDR.
From year 2020, Govt impose zero MDR on UPI transactions and give 1500 crore subsidy for UPI transactions.
Now government gives this subsidy amount to NPCI and every quarter NPCI distributes this subsidy amount to issuer and acquirer banks and later banks distribute this subsidy amount with their partner companies, payment gateways, third party UPI apps etc.
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Note - Credit card linked UPI has different MDR charges.
Credit card link UPI is under developing. We need to wait till the end of 2023.
Merchant will charge 1.5% to 3% MDR for accepting Credit card link UPI (depend on merchant categories).
Small merchants get exemption for accepting credit card link UPI under Rs2000.
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Now, what about Wallet UPI or PPI link UPI ?
I dnt know yet, i think currently zero MDR for Wallet UPI payment but soon once credit card linked UPI will fully live. Wallet UPI will charge MDR from merchants through credit card linked UPI network. Same like Prepaid cards use credit card network.
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Before i go, let me tell you MDR charge is not a source of income for banks and UPI apps.
Phonepe, Googlepay, Paytm UPI etc dnt care if UPI charge MDR or not. UPI apps want data and more and more market share. That's how they get funding and sales other services like recharge/bill payment, in-apps payments, mutual funds, insurance etc.
https://www.desidime.com/discussions/phonepe-reaches-usd-1-trillion-annualised-payment-value-run-rate-gets-payment-aggregator-licence?page=1#post_9148331
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that's a great and detailed piece of information touched the subject in great details. That's why dimers knows you by your name.
abhishek012 wrote:Merchants were paying this MDR fees between the year 2016 to 2019 -
UPI merchant transaction under Rs100 - No MDR
UPI merchant transaction between 101 to 1000 - 0.1% MDR
UPI merchant transaction above Rs1000 - 0.25% MDR.
From year 2020, Govt impose zero MDR on UPI transactions and give 1500 crore subsidy for UPI transactions.
Now government gives this subsidy amount to NPCI and every quarter NPCI distributes this subsidy amount to issuer and acquirer banks and later banks distribute this subsidy amount with their partner companies, payment gateways, third party UPI apps etc.
-----------------------------------------------------------------------------------------------------------------
Note - Credit card linked UPI has different MDR charges.
Credit card link UPI is under developing. We need to wait till the end of 2023.
Merchant will charge 1.5% to 3% MDR for accepting Credit card link UPI (depend on merchant categories).
Small merchants get exemption for accepting credit card link UPI under Rs2000.
-----------------------------------------------------------------------------------------------------------------
Now, what about Wallet UPI or PPI link UPI ?
I dnt know yet, i think currently zero MDR for Wallet UPI payment but soon once credit card linked UPI will fully live. Wallet UPI will charge MDR from merchants through credit card linked UPI network. Same like Prepaid cards use credit card network.
------------------------------------------------------------------------------------------------------------
Before i go, let me tell you MDR charge is not a source of income for banks and UPI apps.
Phonepe, Googlepay, Paytm UPI etc dnt care if UPI charge MDR or not. UPI apps want data and more and more market share. That's how they get funding and sales other services like recharge/bill payment, in-apps payments, mutual funds, insurance etc.
that's a great and detailed piece of information touched the subject in great details. That's why dimers knows you by your name.
https://www.desidime.com/discussions/phonepe-reaches-usd-1-trillion-annualised-payment-value-run-rate-gets-payment-aggregator-licence?page=1#post_9148914
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abhishek012 wrote:Merchants were paying this MDR fees between the year 2016 to 2019 -
UPI merchant transaction under Rs100 - No MDR
UPI merchant transaction between 101 to 1000 - 0.1% MDR
UPI merchant transaction above Rs1000 - 0.25% MDR.
From year 2020, Govt impose zero MDR on UPI transactions and give 1500 crore subsidy for UPI transactions.
Now government gives this subsidy amount to NPCI and every quarter NPCI distributes this subsidy amount to issuer and acquirer banks and later banks distribute this subsidy amount with their partner companies, payment gateways, third party UPI apps etc.
-----------------------------------------------------------------------------------------------------------------
Note - Credit card linked UPI has different MDR charges.
Credit card link UPI is under developing. We need to wait till the end of 2023.
Merchant will charge 1.5% to 3% MDR for accepting Credit card link UPI (depend on merchant categories).
Small merchants get exemption for accepting credit card link UPI under Rs2000.
-----------------------------------------------------------------------------------------------------------------
Now, what about Wallet UPI or PPI link UPI ?
I dnt know yet, i think currently zero MDR for Wallet UPI payment but soon once credit card linked UPI will fully live. Wallet UPI will charge MDR from merchants through credit card linked UPI network. Same like Prepaid cards use credit card network.
------------------------------------------------------------------------------------------------------------
Before i go, let me tell you MDR charge is not a source of income for banks and UPI apps.
Phonepe, Googlepay, Paytm UPI etc dnt care if UPI charge MDR or not. UPI apps want data and more and more market share. That's how they get funding and sales other services like recharge/bill payment, in-apps payments, mutual funds, insurance etc.
So UPI is not going to free in future.Sooner or later government will withdraw subsidy and user have to pay charges for transaction. 
https://www.desidime.com/discussions/phonepe-reaches-usd-1-trillion-annualised-payment-value-run-rate-gets-payment-aggregator-licence?page=1#post_9149171
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Merchant will happily pay the MDR charges. 0.1% MDR is nothing for small merchants.
Suppose if you buy something for Rs 200, don't you think small merchants can't afford Re 0.2 MDR ?
Before 2020, merchants were paying this MDR fees.
I still dnt understand what was the need to do zero MDR in UPI. In fact, zero MDR has slowed down UPI transactions.
Kotak bank was offer sometimes 10% cashback upto 100, 200 or 500 on any UPI merchant payments. Due to zero MDR all offers are now over.
stoptomove wrote:No, UPI will always be free for customers.So UPI is not going to free in future.Sooner or later government will withdraw subsidy and user have to pay charges for transaction.
Merchant will happily pay the MDR charges. 0.1% MDR is nothing for small merchants.
Suppose if you buy something for Rs 200, don't you think small merchants can't afford Re 0.2 MDR ?
Before 2020, merchants were paying this MDR fees.
I still dnt understand what was the need to do zero MDR in UPI. In fact, zero MDR has slowed down UPI transactions.
Kotak bank was offer sometimes 10% cashback upto 100, 200 or 500 on any UPI merchant payments. Due to zero MDR all offers are now over.
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So they earned 1680 cr?