India, May 7 -- Paytm founder and CEO Vijay Shekhar Sharma said that the introduction of merchant discount rate (MDR) on UPI payments will result in a rise in revenue for the fintech major but also has the potential to intensify the competition.

MDR is the fee paid by merchants to banks and payment service providers involved in executing a transaction.

Speaking during Paytm's Q4 FY25 post-earnings call, Sharma said that the company expects to see a margin structure similar to what exists today for credit and debit card transactions, where some merchant categories yield higher net margins than others, if MDR is allowed for UPI transactions.

"It's similar to what we see today with credit and debit cards, we're quite familiar with that dy...