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UPI’s Rapid Growth Raises Sustainability Questions for GetePay
UPI is now used for most digital payments in India.
It is growing quickly and is taking some business away from credit and debit cards.
Merchants usually do not pay a normal transaction fee when they accept UPI payments.
GetePay says payment companies still have to pay for technology, security, fraud prevention and customer service.
The company believes a very small fee could help pay for these costs.
For example, a 5-basis-point fee would charge ₹5 on a ₹10,000 payment.
Supporters say this could make the payment system stronger without making it too expensive.
The final decision would depend on how policymakers distribute the money among banks and payment companies.
UPI processed 24,162 crore transactions worth ₹314 lakh crore in FY26, with volume up 30% year over year.
UPI accounts for about 85% of digital payment transactions by volume and had 55.49 crore users onboarded by June.
GetePay says the zero-MDR model may not adequately fund technology, cybersecurity, fraud prevention, compliance and merchant servicing.
Founder Praveen Sharma proposed considering a nominal transaction-linked MDR, beginning at a few basis points.
At 5 basis points, every ₹1 lakh crore in eligible annual transaction value could generate ₹50 crore in gross MDR revenue.
- Who
- GetePay and its founder, Praveen Sharma, are calling for consideration of a nominal UPI transaction fee.
- What
- GetePay has proposed reconsidering the zero-MDR model to improve the financial sustainability of UPI infrastructure.
- Where
- India, including GetePay’s operations in Rajasthan.
- When
- The article was published on September 7, 2026; it cites FY26 transaction data and user figures recorded by June.
- Why
- GetePay says transaction-linked revenue could help fund technology, cybersecurity, fraud prevention, compliance and merchant servicing as UPI expands.
Nominal MDR proponents
Zero-MDR affordability concerns
Funding the payment ecosystem
Nominal MDR proponents
GetePay says a small transaction-linked fee could create revenue to support technology, cybersecurity, fraud prevention, compliance and merchant servicing.
Zero-MDR affordability concerns
UPI has largely operated without conventional merchant fees, helping preserve its affordability and accessibility for merchants and users.
Future of UPI pricing
Nominal MDR proponents
Praveen Sharma argues that even a fee of a few basis points would be preferable to zero MDR as UPI replaces card payments and expands into more merchant categories.
Zero-MDR affordability concerns
Any change to the zero-MDR model could affect the affordability and accessibility that have supported UPI’s widespread use, although the article does not identify a specific opposing organization.
Key facts
- UPI FY26 volume
- 24,162 crore transactions
- UPI FY26 value
- ₹314 lakh crore
- Year-over-year growth
- 30% in transaction volume and 21% in transaction value
- User base
- 55.49 crore users onboarded by June
- Digital payment share
- About 85% by transaction volume
- GetePay reach
- More than one million merchants and over 300 partners
- Illustrative MDR
- 5 basis points would produce ₹50 crore per ₹1 lakh crore of eligible annual transaction value
Quotes
Praveen Sharma
Founder of GetePay
“Even if it starts with some basis points, it is better than zero MDR.”
thehindubusinessline.com
Sources
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