BharatPe backs UPI MDR, distances itself from Grover

Fintech firm BharatPe has endorsed the new Merchant Discount Rate (MDR) for UPI merchant transactions, but has distanced itself from the criticism of the move by its co-founder and ex-CEO Ashneer Grover. Grover's opinions were presented in his personal capacity and do not reflect BharatPe's stance. Grover had no ties to the company since 2024, nor is he a shareholder or associated in any capacity, according to a BharatPe spokesperson.

Grover publicly opposed the new UPI MDR framework on social media and at industry events, stating that it would negatively impact the successful mobile payment system in India. BharatPe, however, argues that the new framework will enhance the economics of digital payments while preserving UPI's free status for consumers and supporting micro and small merchants.

CEO Nalin Negi emphasized that UPI transactions remain charge-free for consumers, and that micro and small merchants under the peer-to-peer framework continue to benefit from zero MDR.

Negi also noted that approximately 96% of person-to-merchant (P2M) transactions will remain unaffected by the changes. The new UPI MDR framework, introduced this week, will impose a 0.4% MDR on UPI payments exceeding Rs 2,000 to merchants starting October 15. Merchants will bear this charge, while person-to-person payments and eligible small-value transactions will remain free.

The framework aims to create resources for expanding merchant acceptance, payment infrastructure, and digital payment adoption, particularly in smaller towns and underserved markets.

This move by BharatPe puts it at odds with Grover's public criticism, but the company clarified that Grover's statements should not be attributed to the fintech.