Fintech firm BharatPe on Thursday came out in strong support of the new Merchant Discount Rate (MDR) framework for UPI merchant transactions, while firmly distancing itself from statements made by its former cofounder and CEO Ashneer Grover.
Clarifying that Grover's remarks do not reflect the company's stance, BharatPe said his views were made strictly in an individual capacity.
"Grover has had no association with BharatPe since 2024 and is neither a shareholder nor associated with the company in any capacity," a company spokesperson said, urging the media not to attribute his statements to the firm.
The clarification comes following Grover's sharp criticism of the Unified Payments Interface (UPI) MDR changes on social media and industry panels.
"Any MDR on UPI will kill the one thing in India which is working like clockwork, i.e., mobile payments. It's a regressive step the government should reconsider," Grover had said in a post on X.
Ending nearly six years of fully free UPI payments, the government earlier this week introduced a 0.4% fee on transfers worth more than Rs 2,000 made to merchants through the platform from October 15 while explicitly ring-fencing everyday person-to-person transactions as well as small payments from any charge.
Contrasting Grover's view, BharatPe said that the new mechanism will strengthen the economics of digital payments while continuing to protect consumers as well as micro and small merchants.
"The new MDR framework proves that UPI will remain free for consumers while building a sustainable, robust and stronger payments ecosystem. Consumers continue to pay no charges for UPI, while micro and small merchants under the P2PM (person-to-person-merchant) framework remain protected with Zero MDR," BharatPe Chief Executive Officer Nalin Negi said.
Negi added that around 96% of person-to-merchant (P2M) transactions will remain unaffected by the changes.
The framework creates resources to expand merchant acceptance, infrastructure, and digital payment adoption, particularly across smaller towns and underserved markets, he said.
