Is Zero MDR Driving the Boom in Digital Payments? Insights from BharatPe’s Sandeep Indurkar
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Synopsis
Discover how government policies like zero MDR are reshaping India’s digital payment landscape. BharatPe’s CEO, Sandeep Indurkar, shares insights on the evolution of transactions and the impact on small businesses. This article delves into how digital adoption is fostering growth in Tier 2 and Tier 3 markets.
Key Takeaways
- Zero MDR has transformed payment processes in India.
- BharatPe is dedicated to enhancing merchant services.
- Digital payments are vital for small businesses.
- Government initiatives are crucial for digital adoption.
- India's fintech sector is rapidly evolving.
Mumbai, Oct 8 (NationPress) Sandeep Indurkar, CEO – Payments at BharatPe, emphasized the transformative effect of government measures on India's digital economy during a recent interview. Speaking with IANS at the Global Fintech Fest 2025, he mentioned that the government's zero MDR (Merchant Discount Rate) policy has revolutionized transactions, particularly in offline markets within Tier 2 and Tier 3 cities.
Indurkar stated, “Merchants have made a direct transition from cash to QR payments due to zero charges. This initiative has significantly increased the volume of digital transactions,” he shared with IANS.
He pointed out that modern payments encompass not only money transfers but also the exchange of data and customer relationships.
“When customers opt for UPI on a platform, they often get redirected to competitor applications, disrupting the seamless experience. Our priority is to facilitate payments within the merchant's own application to maintain customer relationships,” he elaborated.
He added that BharatPe offers a dedicated team along with an AI co-pilot to assist merchants in quickly integrating digital payment solutions.
This specialized team aids in establishing both product and technical infrastructure while ensuring compliance with banks and NPCI regulations.
Indurkar used BharatPe's own remarkable growth as an illustration of how fintech can flourish in India.
“In just six years, BharatPe has achieved a valuation exceeding $2 billion. Events like the Global Fintech Festival provide an excellent platform to showcase products, engage investors, and expand the customer base,” he remarked.
He also highlighted how simplified payment processes are benefiting small businesses and home entrepreneurs.
“Nowadays, boutiques on Instagram or individuals selling homemade pickles can effortlessly receive digital payments. This fosters trust and enhances distribution, ultimately boosting the economy,” he noted.
Reflecting on governmental initiatives, Indurkar commended the strides made to promote digital adoption.
“With ONDC, UPI expansion, and zero MDR, the government has facilitated businesses to transition online. It’s heartening to observe Tier 2 and Tier 3 markets leapfrogging directly into digital payments,” he stated to IANS.
On the broader economic landscape under Prime Minister Narendra Modi, Indurkar remarked, “Over the past 25 years, India has achieved remarkable progress. The digital payment ecosystem is one of many areas showcasing this growth, creating opportunities for businesses, both large and small.”
Point of View
It is essential to recognize the pivotal role that government initiatives play in fostering a more inclusive digital economy. BharatPe's focus on zero MDR is a step towards empowering micro and small enterprises, which are crucial for India's economic growth. The emphasis on retaining customer relationships within apps is a strategic move that could redefine consumer interactions in the digital payment landscape.
NationPress
08/10/2025
Frequently Asked Questions
What is zero MDR?
Zero MDR refers to the Merchant Discount Rate, which is the fee charged to merchants for accepting digital payments. The government's initiative to implement zero MDR eliminates this cost, encouraging more businesses to adopt digital payment solutions.
How does zero MDR benefit small businesses?
By removing transaction fees, zero MDR allows small businesses to engage in digital payments without incurring additional costs, thereby enhancing their profitability and competitiveness.
What impact does digital payment adoption have on the economy?
Increased digital payment adoption leads to a more efficient transaction process, boosts consumer trust, and ultimately stimulates economic growth by enabling businesses to reach wider markets.
How has BharatPe adapted to these changes?
BharatPe has developed a dedicated team and AI tools to help merchants integrate digital payment solutions swiftly, ensuring compliance and enhancing user experience.
What future trends can we expect in digital payments?
We can anticipate continued growth in digital payment solutions, with innovations aimed at improving user experience, enhancing security, and expanding access for underserved markets.
