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Pine Labs bets on UPI monetisation, targets Rs 33,000-34,000 crore monthly GTV by FY28

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Pine Labs bets on UPI monetisation, targets Rs 33,000-34,000 crore monthly GTV by FY28

Pine Labs bets on UPI monetisation, targets Rs 33,000-34,000 crore monthly GTV by FY28

More than 65% of its UPI GTV comes from transactions exceeding Rs 2,000, potentially providing a sizeable base for monetisation if MDR is introduced on eligible transactions.

The company plans to deploy at least one million additional soundboxes to capture UPI transactions currently processed through competing devices at existing merchant locations. Pine Labs is diversifying its affordability business beyond consumer electronics while expanding its fintech infrastructure and international payments operations across 22 countries. Flow, affordability and transaction-processing GTV grew 51.7% year on year to Rs 96,000 crore in Q2FY27, supported by growth across payment services. ICICI Securities estimates Rs 160 crore in MDR revenue in FY28 and projects EBITDA of Rs 950 crore, compared with Rs 800 crore without MDR.

Pine Labs expects to process Rs 33,000-34,000 crore of monthly UPI gross transaction value (GTV) by FY28, positioning itself to benefit from a potential introduction of merchant discount rate (MDR) on eligible UPI transactions. UPI already accounts for 75-77% of transactions on its point-of-sale (POS) terminals, with volumes growing at an annual rate of around 68% over the past two years. More than 65% of its UPI GTV comes from transactions exceeding Rs 2,000, potentially providing a sizeable base for monetisation if MDR is introduced on eligible transactions. The company also plans to deploy at least one million additional soundboxes to capture transactions currently processed through competing devices at existing merchant locations, according to an ICICI Securities report.


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