UPI Earns ₹0: Does Your Loan App Pay the Price?
Paytm and other fintech apps make no money from UPI payments. So they push loans to survive. A new MDR policy could flip this — changing which loan deals you get offered and at what price.
A UPI payment of ₹500 earns the app exactly ₹0 — less than a cutting chai.
UPI transactions earn zero fee — and that gap hits your loan offers
Key Takeaways
Compare any loan offer you receive inside a payments app on a neutral aggregator — the in-app offer is often commission-driven, not the cheapest available.
Check the lender's name on your loan sanction letter: ensure it is an RBI-registered NBFC or bank, not the payments app itself acting as an unauthorised lender.
Review your credit score before accepting any pre-approved loan on a fintech app — a hard inquiry lowers your CIBIL score even if you decline after the check.
Paytm and other fintech apps make no money from UPI payments. So they push loans to survive. A new MDR policy could flip this — changing which loan deals you get offered and at what price.
Here's what happened: UPI transactions carry zero MDR under current NPCI rules, meaning fintech platforms earn nothing directly from processing payments.. Paytm and similar apps shifted their revenue focus to loan distribution and co-lending partnerships after the Paytm Payments Bank regulatory action in early 2024.. A potential MDR reintroduction for UPI — debated by the payments industry — could reshape how fintech apps earn money and which products they push to users..
What you should do: Compare any loan offer you receive inside a payments app on a neutral aggregator — the in-app offer is often commission-driven, not the cheapest available.. Check the lender's name on your loan sanction letter: ensure it is an RBI-registered NBFC or bank, not the payments app itself acting as an unauthorised lender.. Review your credit score before accepting any pre-approved loan on a fintech app — a hard inquiry lowers your CIBIL score even if you decline after the check..
A fintech app's 'pre-approved' loan offer triggers a hard credit pull the moment you tap 'Check Offer' on some platforms — check the app's T&C before clicking.
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This article is reported by GoCredit's Editorial Team based on the source above. GoCredit synthesises, contextualises, and adds India-borrower-relevant analysis. We are not the original publisher.
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