MobiKwik integrates wallet with UPI: Here's how it works

Once the wallet is activated, users can scan and pay merchants through the in-app MobiKwik QR scanner, and make payments to online merchants by entering their unique MobiKwik wallet UPI IDs as a payment option. To add money to their MobiKwik wallets, users can also combine balances from two sources, including multiple bank accounts or cards, providing greater flexibility and convenience.

Recently, NPCI guidelines made wallets interoperable on the UPI rail, treating wallets like bank accounts. This enables MobiKwik users to pay via UPI from either their bank account or MobiKwik wallet by scanning the same UPI QR code, which they couldn’t do earlier.

For transactions where payment is made from the wallet balance and not the bank account, no merchant fee or MDR needs to be paid by the merchant for transactions below Rs 2,000.

For transactions above this amount, a nominal MDR of 1.1 percent will be charged to the merchant for PPI transactions over UPI. Since most merchants already pay an MDR for accepting wallet transactions, there is no significant impact on merchants or users due to NPCI's announcement.