India UPI fee shift to boost PhonePe and Google Pay
India allowing merchant fees on UPI transactions will generate significant annual revenue. The policy change is expected to cement dominant players market leads.
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Walmart Inc.-backed PhonePe and Alphabet Inc.'s Google Pay could capture up to $900M in annual revenue following India's decision to permit merchant fees on its UPI network. The shift ends a six-year zero-fee policy across the network, cementing the two dominant platforms' market lead. Together, PhonePe and Google Pay handled 80% of UPI payment values last month, giving them fresh capital to fund rural expansion.
